GUELPH, ON, Oct. 31 /CNW/ - BIOREM Inc. (TSXV: BRM), a clean technology air pollution control company, is pleased to announce that today it completed a $3,000,000 debenture financing with Wellington Financial LP.
The debt financing was completed to bolster Biorem's working capital position to deliver on its current record level of Order Backlog and to execute its strategic plan to further grow its business and more thoroughly penetrate industrial markets.
In addition, the Company believes that its recently announced advances in technology development, and planned future advances, will result in broader air pollution treatment applications for Biorem's technology, and consequently, greater demand for its products.
"Biorem is a clean technology air pollution control company that is expanding the use of our technology to a wider range of applications that allows us to enter new markets." says Peter Bruijns, President and CEO. "This funding will be used for working capital and the investment in R&D and sales resources to drive future growth in bookings and revenues."
In connection with the financing, Biorem has also issued to Wellington Financial 1,153,846 special warrants which are exercisable into 1,153,846 share purchase warrants, each of which share purchase warrants is, upon payment of the exercise of price of $0.65, exercisable to acquire one common share of Biorem. The share purchase warrants have a five year term from today's date. The warrants, if exercised today, would represent approximately 8.8 per cent of the outstanding common shares of Biorem.
Canaccord Capital Corp. acted as financial advisor to the Company with respect to this transaction.
About BIOREM Inc.
BIOREM manufactures Biosorbens(R) biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications, including BIOCUBE(R) modular units and Mytilus(R) biotrickling filters. With over 500 installed systems and over a decade of experience, the Company's products are the technology of choice for odor control at wastewater treatment plants across North America. Additional information on BIOREM is also available at our web site at www.biorem.biz.
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The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.
Forward-Looking Statements
This press release contains forward-looking statements based on current expectations. These forward-looking statements contain various risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Risks and uncertainties about the Company's business are more fully discussed in the disclosure materials, financial statements and MD&A filed with the securities regulatory authorities in Canada on www.sedar.com
Non-GAAP Measures
"EBITDA", "Order Bookings", and "Order Backlog" do not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and may not be comparable to measures presented by other companies.
EBITDA is used to denote earnings (loss) from operations and represents earnings before interest, income taxes, depreciation and amortization. EBITDA should not be construed as a substitute for net income determined in accordance with GAAP. This measure is important to the Company since it is used by potential investors and lenders to evaluate the ongoing cash generating capability of the Company and thus the amounts they are willing to invest and lend to the Company.
Order Bookings and Order Backlog are non-GAAP measures that the Company uses to evaluate its sales performance. Order Bookings are those binding contracts that the Company enters into with a third party for the delivery of our products or services. As Order Bookings are received, the contract value (before any associated sales taxes) is included in the Order Backlog. The Order Backlog is reduced by the revenue that is recognized on each project.
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