Icefloe Technologies Inc.: February 2006 Private Placement Closing.
The Debentures are issued in minimum amounts of $25,000 (a "Debenture Unit") and bear interest at a rate of ten percent (10%) annually, payable by way of an annual cash payment. For the first year of the Debenture, at the option of Icefloe, Icefloe may provide interest payment in kind by way of the issuance of common shares, at the lower of $0.60 per share or the Market Price (as defined by TSX Venture Exchange ("Exchange") policies). In no event will the conversion price on the common shares issued as interest be less than the Market Price reserved for the Private Placement. In the second and third years, interest payments will be in cash only.
Icefloe has the right to fully redeem the Debentures any time prior to maturity for a cash payment in the amount of the principal plus accrued interest and a maturity premium in the amount of $6,250 (the "Maturity Premium") for each Debenture Unit redeemed. If the Debentures are held to maturity, the Maturity Premium for each Debenture Unit will be paid to the Debenture holder in addition to the interest rate of ten percent (10%) previously described. Twenty-five percent (25%) of the aggregate gross proceeds of the Private Placement will be placed in escrow and will released either as payment of the Maturity Premium if and when required or upon the attainment of certain escrow release conditions by Icefloe. The funds in escrow will accrue interest throughout the escrow period, which interest will be payable to Icefloe annually on the anniversary of the private placement.
The Debenture Units are convertible into Icefloe common shares at any time, at the option of the Debenture holder, at a conversion price of $0.60 per Icefloe common share over the first year of the term, $0.65 per Icefloe common share in the second year of the term and at $0.70 per Icefloe common share in the third year of the term. The conversion prices are subject to anti-dilution provisions that may reduce the previously mentioned conversion prices in certain restricted circumstances; however in no case shall the conversion price be less than the Market Price reserved for the Private Placement.
Wingate Investment Management Ltd. ("Wingate") acted as broker for the Private Placement. Wingate received a cash commission in the amount of $12,000. Wingate also received an Agent's Warrant with a term of two years from the date of the issuance of the Agent's Warrant for 20,000 warrants each entitling Wingate to purchase one common share of Icefloe at an exercise price of $0.60 per common share in the first year of the term and thereafter reducing to 18,461 warrants each entitling Wingate to purchase one common share of Icefloe at an exercise price of $0.65 per common share in the second year of the term of the Agent's Warrant.
The number of common shares of Icefloe issued and outstanding is currently 7,249,592 common shares. In addition, there are 1,028,300 options and 3,553,318 warrants outstanding, which if exercised would increase the amount of common shares outstanding by an equal amount. If the first year of Debenture interest is paid in common shares and the Debentures are converted in the second year of the term (which is the maximum number of shares expected to be issued pursuant to the Debentures, excluding the anti-dilution provisions applicable under certain restricted circumstances previously mentioned), a total of 270,234 further common shares would be issued, in addition to the 3,825,873 common shares which may be issued pursuant to the previously announced first issue of 10% Senior Secured Convertible Debentures. The Debentures and the common shares issuable pursuant to the Debentures are subject to a hold period of four months from the date of distribution of the Debentures, pursuant to Exchange policies and to Multilateral Instrument 45-102 - Resale of Securities.
Further details regarding the Private Placement may be found in the documents filed by Icefloe from time to time on SEDAR at www.sedar.com.
ABOUT ICEFLOE TECHNOLOGIES INC.
Founded in March 2001, Icefloe (TSX Venture Exchange: ICY) is a Canadian-based company dedicated to the development and commercialization of its proprietary chilling technology which brings flash chilling capability in a portable form and enables the beverage industry to serve ice cold draft beer without excessive foam loss, anytime and anywhere. Since April 2001, Icefloe has focused its efforts on securing patents for its platform technologies, while developing, field-testing, manufacturing and marketing commercial products using its unique technologies. Its wholly owned subsidiary, Draught Guys Inc., provides installation, sales and service for both traditional draft systems and Icefloe's proprietary products in the Ontario market. For more information about Icefloe, please visit Icefloe's website at www.icefloe.com.
Icefloe commenced trading on Tier 2 of the TSX Venture Exchange on April 14, 2004 under the symbol "ICY".
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No Securities Commission or other regulatory authority having jurisdiction over Icefloe has approved or disapproved of the information contained herein.
Certain information included in this press release is forward-looking and may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with Icefloe's growth, the development of the beverage market, regulatory risks, intellectual property infringement and other factors. Unless otherwise required by applicable securities laws, Icefloe disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about potential factors that could affect Icefloe's financial and business results is included in public documents Icefloe files from time to time with Canadian securities regulatory authorities.
Icefloe Technologies Inc. (TSX VENTURE:ICY)
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|Date:||Feb 13, 2006|
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