QUEBEC – FEBRUARY 15, 2007– Advitech inc. (“Advitech”) (TSX Venture: AVI) announces the completion of a private placement of $ 500,000, by means of a convertible debenture to Capital Financière agricole Inc. (“CFAI”).
The capital of the debenture, bearing interest at the annual rate of 12 %, will be repayable on January 31, 2012. From closing date until August 31, 2007, interest will be capitalized and will become payable at the end of the term. From September 1, 2007 thereafter, interest will be paid on a monthly basis. The debenture may be repaid by Advitech at any time without penalty. The debenture is also convertible in common shares, at the holder’s option, at a conversion price of $ 0.15 per common share until January 31, 2008, and of $ 0.20 per common share until January 31, 2009. In accordance with the policies of the TSX Venture Exchange, conversion price will then be increased by 10 % for each subsequent year until the end of the term. The convertible debenture and the common shares, which may be issued following the conversion, are subject to resale restrictions during a four (4) months period following the closing of the private placement.
The proceeds of this private placement will be applied by Advitech for DermylexTM marketing and commercialization efforts.
Advitech has obtained conditional approval from the TSX Venture Exchange in relation to this private placement.
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 61,247,318. 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.
About Capital Financière agricole Inc.
Founded in the spring of 2002, Capitale Financière agricole Inc is a venture capital investment fund specialized in agro and agri-food sectors. Capital Financière agricole Inc. invests primarily in processing and commercialization projects that ensure market prospects for Quebec agricultural products including upstream primary sectors and agricultural projects.
For more information, please consult the web site www.cfai.qc.ca.
This press release contains forward-looking statements which reflect the Company'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.
Capital Financière agricole Inc.
(418) 834-6857, ext. 6434