SYS-CON MEDIA Authors: Adine Deford, Cynthia Dunlop, Harry Trott, Xenia von Wedel, Peter Silva

News Feed Item

Innovative Composites Announces $1.5 Million Funding Agreement With Bassett Financial

TORONTO, ONTARIO -- (Marketwired) -- 08/25/14 -- Innovative Composites International Inc. (CSE: IC)("ICI", or the "Company") is pleased to announce that it has entered into a definitive Commitment Letter and Advisory Agreement (the "Agreement") with Bassett Financial Corporation ("Bassett") to assist with the restructuring of the Company to build a more stable financial platform for the Company, and to assist in growing the Company to meet its full sales potential. The Agreement also contemplates new funding for the Company, including a $500,000 6-month bridge loan (the "Bridge Loan") and $1 million in equity funding (the "Financing").

The terms of the Agreement include:


--  Completion of $500,000 Bridge Loan, secured by working capital and
    certain intellectual property owned by the Company, with a term of 6
    months extendable under certain conditions to 12 months at a rate of 3%
    per month payable monthly in arrears;
--  Completion of a $1 million private placement Financing at the current
    share price of $0.01 per share;
--  Installation of Bassett Director, Chris Carl, as Chief Financial Officer
    of the Company;
--  A corporate finance advisory engagement whereby Basset will assist the
    Company in restructuring its balance sheet, work with ICI to revise the
    business plan toward achieving high growth sales in Canada and the US,
    and to provide multi-faceted assistance in leveraging the public listing
    potential of the Company;
--  Payment of a $10,000 per month working fee which will be increased to
    $20,000 per month in the event the Company reaches monthly positive
    earnings before tax and depreciation at any point during the term of the
    Agreement;
--  Issuance of 48,000,000 common shares of the Company at a deemed price
    equal to the price of shares issued in the Financing, with such Common
    Shares vesting equally over the achievement of 4 critical milestones for
    the Company, as additional payment for services; and
--  The nomination of Basset's CEO, Matthew Bassett, to the Board of
    Directors of ICI.

Completion of the obligations of Basset as set out in the Agreement are subject to, among other things, the holders of the Company's existing convertible debentures agreeing to amend their existing conversion privileges so as to permit conversion only at the time of maturity. The Agreement is also subject to the satisfaction of certain customary conditions, including the receipt of all required regulatory approvals and satisfaction of all regulatory requirements, including the requirements of the Canadian Securities Exchange (the "CSE").

The proceeds of the new funding will be used to reduce trade payables and to fund new inventory to meet a growing backlog of sales orders. As the Company's balance sheet is restructured, overhead is reduced where practical and the Company achieves a growth in sales, the Company hopes to reach break-even on an EBITDA basis. Based on these assumptions, if completed, the Bridge Loan and the Financing would give the Company approximately 18 months of operating cash and working capital without a need for additional financing.

ICI has been actively involved in developing its patented technology into a line of lightweight, non-corrosive structural building materials which can be used in a wide array of industrial and commercial applications by large corporate customers. Following a long period of developing home and emergency shelter products for disaster relief situations, ICI has enjoyed much greater sales success recently, concentrating on more immediate commercial and industrial opportunities.

"We believe that Bassett Financial gives us the solid foundation we have been seeking to help ICI grow to become a profitable organization within the next few years", said ICI CEO, Mark Rivers. "Not only does Bassett bring much needed financial assistance, but their experience in growing and managing small public companies makes them excellent partners for our capable technical management team. Building on the quality and uniqueness of our technology and our processes our products continue to be validated by governmental agencies and global fortune five hundred companies in a wide range of industries, including, automotive, industrial, construction, travel, and transportation. With the support of Bassett we now have the financial foundation to pursue these opportunities systematically and professionally."

"ICI has an incredible array of practical, cost competitive and environmentally friendly products that we believe will see growth in demand in the coming years and we are excited to become an active partner to assist the Company in managing this growth effectively," said Basset CEO, Matthew Bassett. "By bringing a renewed focus on sales growth and conservative capital management to the Company, we believe that ICI will be well positioned to deliver increased value to all its stakeholders, old and new. "

About Innovative Composites

Innovative Composites International is working to lead the way in thermoplastics for the housing, transportation and composite panel industries with advanced, environmentally friendly materials.

The flagship product, Structure-Lite composite panels are widely usable in the transportation industry, cargo containers, truck body containers as well as highway sound barrier panels. Using recycled materials such as plastic water bottles, the panels are environmentally friendly made with low cost, readily available raw materials. This lets the panels be created quickly and efficiently and able to be customized for nearly any application. The composite panels won't rust, rot or warp and each one is insect, water and UV resistant. The strength to weight ratio also makes them much lighter compared to steel panels, which have the same strength but are twice as heavy. The versatility and durability of ICI's composite panels makes them ideal to replace many conventional materials.

To find out more about ICI please visit our website at: www.innovativecompositesinc.com

This press release contains forward-looking information under Canadian securities legislation. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Forward-looking information includes, but is not limited to, statements with respect to completion of the Bridge Loan and the Financing, the development Company's future sales-growth, and future funding requirements. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions, estimates and assumptions of management of the Company as of the date such statements are made. Although ICI believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward- looking statements because ICI can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of ICI to be materially different from those expressed or implied by such forward-looking statements, including but not limited the failure to close the Bridge Loan or the Financing based on the inability of either party to meet a condition to closing as set forth in the Agreement, and those risks described in the Company's public documents filed on SEDAR from time to time. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. The CSE has not reviewed and neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We help companies that are using a lot of Software as a Service. We help companies manage and gain visibility into what people are using inside the company and decide to secure them or use standards to lock down or to embrace the adoption of SaaS inside the company," explained Scott Kriz, Co-founder and CEO of Bitium, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionalit...
Some developers believe that monitoring is a function of the operations team. Some operations teams firmly believe that monitoring the systems they maintain is sufficient to run the business successfully. Most of them are wrong. The complexity of today's applications have gone far and beyond the capabilities of "traditional" system-level monitoring tools and approaches and requires much broader knowledge of business and applications as a whole. The goal of DevOps is to connect all aspects of app...
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
When an enterprise builds a hybrid IaaS cloud connecting its data center to one or more public clouds, security is often a major topic along with the other challenges involved. Security is closely intertwined with the networking choices made for the hybrid cloud. Traditional networking approaches for building a hybrid cloud try to kludge together the enterprise infrastructure with the public cloud. Consequently this approach requires risky, deep "surgery" including changes to firewalls, subnets...
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!