QUEBEC CITY – APRIL 2, 2007 – Advitech inc. (“Advitech” or the “Corporation”) (TSX Venture: AVI) announces that it has completed today a private placement by way of offering memorandum, announced on February 28, 2007, for a total amount of $884,128. Of this amount, $448,000 comes from the issuance of convertible debentures and $436,128 from the issuance of units.
The convertible debentures bear interest at an annual rate of 12% payable monthly. From the closing date until August 31, 2007, interest on the debentures will be capitalized, added to the capital amount of the debentures and paid at the end of the term. The capital of the debentures will become due on January 31, 2012 and may be repaid by the Corporation at any time, without penalty. The debentures are also convertible into common shares of the Corporation at a conversion price of $0.15 per common share until January 31, 2008 and $0.20 per common share until January 31, 2009, said conversion price being increased by 10% for each subsequent year until the end of the term.
Each unit will be comprised of one common share of the Corporation and one common share purchase warrant entitling its holder to purchase one additional common share at the price of $0.20 per share during the first year from the closing date and at a price of $0.25 until the second anniversary of the closing.
As disclosed in the offering memorandum, National Bank Financial Inc. has received fees equal to 6% of the subscription proceeds coming from predetermined subscribers, for a total amount of $52,387.
“This financing will give us an additional leeway and will allow us to reach our 2007 commercial goals and others objectives linked to our R&D program,” said Renaud Beauchesne, president and chief executive officer of the Corporation. “In addition, we are currently evaluating additional opportunities to finance our activities in order to strengthen our financial capacity.”
STOCK OPTION GRANT
Advitech Inc. also announces that pursuant to the Company’s stock option plan, it has granted a total of 300,000 stock options to its employees and an investors’ relations consultant at an exercise price of $0.20 per option. A total of 200,000 options granted to its employees are valid for a period of five (5) years. A total of 100,000 options granted to an investors’ relations consultant will vest in four (4) equal quarterly tranches at the end of each quarter, in accordance with the policies of the TSX Venture Exchange, for a period of twelve (12) months. This grant of options is subject to regulatory approval, as the case may be.
About Advitech Inc.
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 (IMID), such as psoriasis and inflammatory bowel disease. Advitech’s common shares are listed on the TSX Venture Exchange under the symbol AVI. The number of common shares outstanding is 64,881,718. The NEW Dermylex™ website is now online at www.dermylex.ca.
Dermylex™, developed by Advitech, is an oral natural health product relieving mild-to-moderate psoriasis symptoms. Two clinical trials, one of them multi-center, double-blind and placebo-controlled, for 112 days and on 84 patients, clinically proved the efficacy and safety of Dermylex™ for that type of psoriasis. Dermylex™ is currently available in Canada. For more information, please visit the www.dermylex.ca website.
This press release contains forward-looking statements which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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