Advitech Inc. (the "Corporation") (TSX-V : AVI), announced today that, further to the execution of the term sheet with AgeChem Venture Fund L.P. ("AgeChem") previously announced on February 10, 2009, it executed a binding conditional subscription agreement with AgeChem for the private placement (the "Private Placement") of 50,000,000 units at a price of $0.02 per unit.
Each unit issued as part of the Private Placement consists of one common share in the share capital of Advitech (a "Common Share") and of one common share purchase warrant (a "Warrant"). Each Warrant will entitle its holder to purchase one Common Share at a price of $0.05 per share for a period of one year following the date of issuance of the Warrants, and, thereafter, at a price of $0.10 per share until the fifth anniversary of the date of issuance of the Warrants.
The Common Shares, the Warrants and the Common Shares underlying the Warrants are subject to a statutory four-month hold period. After completion of the Private Placement, AgeChem will hold directly, assuming fulfilment of the remaining conditions, including, among others, the conversion of at least 80% of the principal amount of the issued and outstanding debentures with accrued interests thereon in Common Shares at a price of $0.02 per share, a total of 58,083,333 Common Shares, representing 25.32% of the outstanding Common Shares as of the date hereof, 58,083,333 Warrants allowing it to acquire 58,083,333 Common Shares at a price ranging from $0.05 to $0.253.
The total subscription price of the Private Placement and the certificates representing the Common Shares and the Warrants are currently held in escrow until receipt of a confirmation that the shareholders of Advitech have voted in favour of the Private Placement at the annual general and special meeting of shareholders of Advitech scheduled to take place on April 16, 2009 and for which a management information circular will be mailed shortly to Advitech's shareholders. The Private Placement is also subject to obtaining final approval of the TSX Venture Exchange for the listing of the securities upon fulfilment of customary conditions for this type of transaction as well as the conversion of the principal amount of debentures of Advitech together with accrued interest thereon in Common Shares at a price of $0.02 per share, the whole according to the terms agreed with AgeChem.
ABOUT ADVITECH INC. WWW.ADVITECH.COM:
Advitech is a health sciences and technology company with a mission to discover and commercialize proprietary and evidence-based natural health products. Effective and safe, these products play a role in the prevention of immune-mediated inflammatory disorders, such as psoriasis and inflammatory bowel disease. Advitech produces Dermylex® for the treatment of mild-to-moderate psoriasis.
Advitech has drawn up a research program to develop new applications related to wound healing. This development is derived from both its XP-828L and IM technological platforms.