QUEBEC CITY, March 31, 2014 /CNW Telbec/ - Innovente Inc.
(TSX-V: IGE) ("Innoventé" or the "Corporation") announces its
results for the quarter ended January 31,
2014 and presents a corporate update.
Saint-Patrice-de-Beaurivage
During this quarter, the Saint-Patrice-de-Beaurivage plant continued
its ramp up period, allowing for the production of 1,753,833 kWh,
representing 19% of the total level of power to be delivered to
Hydro-Québec for a quarter in accordance with the purchase
agreement between Innoventé and Hydro-Québec. In February 2014, this production level increased to
30% and then to 51% for a period of 20 days for the period of
March 1st to March 20, 2014. Although the progression of the
Saint-Patrice-de-Beaurivage plant
is slower than initially expected, the Corporation believes it is
in line with the progression level of other plants in the industry
regarding the time required to achieve the maximum capacity for
this type of plant. "We are confident that the corrective
actions taken will improve the performance of the Saint-Patrice-de-Beaurivage plant and will
allow us to reach our goals in the coming months delivering 100 %
of level of power to be delivered to Hydro-Québec under the
agreement" explains Mr. Richard
Painchaud, Innoventé's President and Chief Executive
Officer.
Matane and
Trois-Rivières
Innoventé completed, during this quarter, the
preliminary engineering of the Matane and Trois-Rivières projects. The
completion schedule of these two projects is now linked to the
finalization of their respective financing arrangements. Innoventé
is currently having discussions with potential lenders and
investors in connection with such financing. "We believe that
the completion of the financing of the Matane and Trois-Rivières projects will be
related to our capacity to reach the goals of level of power at
Saint-Patrice-de-Beaurivage
plant" says Mr. Richard
Painchaud, Innoventé's President and Chief Executive
Officer.
Financial statements for the periods ended January 31, 2014 and 2013 (unaudited)
|
|
|
|
Quarters
ended
January 31 |
Nine-month
periods
ended January 31 |
|
2014 |
2013 |
2014 |
2013 |
|
$ |
$ |
$ |
$ |
Revenues |
217,127 |
- |
331,721 |
- |
Operating expenses |
1,547,594 |
- |
2,106,074 |
- |
Research and development costs |
- |
548,931 |
330,732 |
1,660,240 |
Administration expenses |
826,181 |
121,998 |
1,659,699 |
374,699 |
Financial expenses |
297,607 |
- |
407,088 |
- |
Net loss and comprehensive loss |
2,209,782 |
708,389 |
3,913,062 |
2,026,613 |
Basic and diluted loss per share |
0.050 |
0.018 |
0.090 |
0.052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
January 31,
2014 |
April 30, 2013 |
|
|
|
$ |
$ |
Cash and cash
equivalents |
183,858 |
1,639,178 |
Total assets |
25,731,324 |
21,738,627 |
Total non-current
liabilities (including current portion of long-term debt due in
less than one year) |
15,289,531 |
10,789,065 |
- Innoventé realized sales revenues of $331,721, including energy sale revenues of
$320,914, for the period between the
commercial commissioning of the Saint-Patrice-de-Beaurivage plant and the end
of the quarter;
- Innoventé made disbursements of $3,062,346 for property, plant and equipment,
mainly for its Saint-Patrice-de-Beaurivage plant;
- Innoventé received amounts of financing by long-term borrowing
for a total of $2,025,000, since the
beginning of the year 2014, mainly from Investissement Québec for
an amount of $1,000,000 and from its
bankers for $900,000.
Debt financing
Innoventé has, after the end of the quarter,
entered into a loan agreement with Investissement Québec for a loan
of an amount of up to $2,000,000. The
loan will bear interest at a fixed rate of 10% compounded monthly
and its principal will be repayable, starting 12 months after the
first disbursement, in monthly instalments over a period of four
years. Disbursement of the loan will be made in instalments,
subject to certain conditions being met by Innovente and the
Corporation received the first disbursement of 350,000 $ on
March 17, 2014. The proceeds from the
loan will be used by Innovente to fund its working capital. The
loan agreement contains additional representations and covenants
customary for a loan of this nature.
Asset acquisitions
During the quarter, in November 2013, the Corporation completed the
acquisition of the assets of the RockTenn cardboard mill located in
Matane. In consideration, the
Corporation paid an amount of $1 and
agreed to take on a seller's long-term liability due to a
government entity, up to a maximum amount of $3,500,000 as of the acquisition date. The
liability would terminate without cash disbursement from the
Corporation upon the achievement of certain contractual milestones.
Once these milestones are achieved, the Corporation has also agreed
to pay an amount of $3,000,000 to the
seller. It is therefore expected that the total amounts to be paid
by the Corporation for this transaction will not exceed a maximum
amount of $3,500,000 under the
various agreements.
About Innoventé
Based in Québec City, Innoventé produces
renewable energy and provides communities with a green and
sustainable solution for the management or organic residues through
its technology patented in Canada
and the United States. Innoventé's
shares are listed on the TSX Venture Exchange under the symbol IGE
(TSXV: IGE). innovente.ca.
Additional information regarding the periods
ended January 31, 2014 and
2013
The financial information for the periods ended
January 31, 2014 and 2013 should also
be read in conjunction with the Corporation's annual financial
statements and Management's Discussion and Analysis for the years
ended April 30, 2013 and 2012 dated
August 26, 2013. These documents are
available at sedar.com.
Method of presentation of information
The financial information for the periods ended
January 31, 2014 and April 30, 2013 was established in accordance with
International Financial Reporting Standards (« IFRS »),
as published by the International Accounting Standards Board
(« IASB »).
Caution Regarding Forward-Looking
Information
Certain statements contained in this document,
including those that express management's expectations or estimates
regarding the Corporation's future performance, are
"forward-looking information" within the meaning of applicable
securities legislation. Forward-looking information is
necessarily based on a certain number of estimates and assumptions
which, while considered plausible by the management when they are
made, are inherently subject to significant commercial, economic
and competitive risks and uncertainties. We advise investors not to
rely unduly on forward-looking information. The Corporation further
declines any intention or obligation to publicly update this
forward-looking information, whether due to new information, or
future or other events, unless required by applicable law.
Neither the TSX Venture Exchange nor its
regulation service provider (as these terms are defined in policies
of the TSX Venture Exchange) bears responsibility for the adequacy
or accuracy of this press release.
SOURCE Innoventé Inc.