IPICO announces closing of $3.5 million financing

BURLINGTON, ON, Sept. 11 /CNW/ - IPICO Inc. (TSX-V: RFD.V) announced today the closing of the non-brokered private placement announced on August 26, 2009 for gross proceeds of $3,500,000, of which $500,000 was subscribed for by directors or other insiders.

Each purchaser of debentures received on closing a commitment fee of 6% together with four warrants for each dollar of principal purchased. The debentures are secured, bear interest at a rate of 12% per annum, payable upon maturity or earlier repayment, mature on the second anniversary of closing, and are convertible at the option of the holder into common shares of IPICO at a price of $0.25 per share. Each warrant entitles the holder to purchase one common share of IPICO for a period of 24 months from closing at a price of $0.25 per share. In addition, a further 350,000 common share warrants with the same terms were issued to the sole holder of the Class A Preferred Shares of IPICO in consideration of certain concessions granted in support of the placement. Cash finder's fees totalling $140,000 were paid in connection with the placement. All of the securities issued in connection with the placement are restricted from resale for a period of four months and one day from closing.

ABOUT IPICO Inc.: IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe, Asia and Australia. IPICO produces smart labels and tags based on the IP-X communication protocol. IPICO's low interference readers are designed to meet regulatory requirements in many major markets, and allow for multi-reader rollout in close proximity. IPICO's low cost RFID products excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. These products are used to optimize the management of items, people, animals and processes within the logistic supply chain and other value chains. For further information, go to www.ipico.com

    
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    

Contacts

Gordon Westwater
President & CEO
IPICO Inc.
Tel: (905) 631-6310
E: gordon.westwater@ipico.com

Ted Irwin
Chief Financial Officer
IPICO Inc.
Tel: (905) 631-6310
E: ted.irwin@ipico.com