VANCOUVER, BC – BioteQ Environmental Technologies Inc. (TSX:BQE) announces that pursuant to National Policy 46-201 “Escrow for Initial Public Offerings” the conditions governing the release of 7,000,000 outstanding common shares in the capital of the Company (the “Escrowed Shares”) have been amended.
In December of 2000, the Company acquired all of the issued and outstanding shares of Biomet Mining Corporation pursuant to a purchase and sale agreement dated February 29, 2000 (as amended August 17, 2000). As a result of the acquisition, the Company issued 11,400,000 common shares in its capital of which the Escrowed Shares were subject to escrow restrictions pursuant to two escrow agreements dated February 29, 2000 (the “Old Escrow Agreements”). Pursuant to the terms of the Old Escrow Agreements the Escrowed Shares were subject to release from escrow on a pro rata basis based upon cash flow from the Company’s operations. Any of the Escrowed Shares not released upon the expiry of 10 years from the date of issuance (being December 20, 2000) were to be cancelled and returned to the Company’s treasury. To date, none of the Escrow Shares have been released. By agreement dated May 17, 2007 (the “New Escrow Agreement”) among the Company, Pacific Corporate Trust Company (the “Escrow Agent”) and the holders of the Escrowed Shares the release provisions have been changed. As the Company is classified as a “Emerging Issuer” under National Policy 46-201 the release provisions under the Policy allow for an initial release of 10% of the number of shares held in escrow and 15% of the original number of Escrowed Shares every 6 months thereafter. Pursuant to the terms of the New Escrow Agreement however the Company and the holders of the Escrowed Shares have agreed to a more stringent release provision than that permitted by National Policy 46-201. The New Escrow Agreement provides for a release of an initial 10% of the number of Escrowed Shares and 30% of the original number once per year following the date of initial release provided however that the Company has built and there are operational three new water treatment facilities during the year prior to the proposed release date. The building of such plants may be cumulative from one year to the next. As a result, in order to achieve the release of all Escrowed Shares by the end of the third year following the initial 10% release the Company will have to have built and there are operational not less than 9 new water treatment facilities by the end of such third year. In addition, those shares which have not been released from escrow on or before December 20, 2010 will be cancelled and returned to the Company’s treasury.
The terms of the New Escrow Agreement were presented to the Company’s shareholders at the Company’s annual and special general meeting held on April 23, 2007 at which time the New Escrow Agreement was approved (excluding votes cast by the holders of the Escrowed Shares and their respective affiliates and associates).
In accordance with National Policy 46-201 the first release of 10% of the number of Escrowed Shares must be at least 60 days after the date of this news release. Therefore, the first scheduled release date will take place on October 8, 2007.
BioteQ is establishing itself as a leader in the treatment of acid contaminated water through the use of its patented BioSulphide® Process and the ChemSulphide™ Process. Focused on the mining industry, BioteQ has partnered with leading metal producers including Phelps Dodge (Freeport), Breakwater, CVRD-INCO, Jiangxi Copper, Aditya Birla, Molymet and Xstrata as well as utilities operator EPCOR Water Services, to finance, design, build and operate mine site water treatment plants which recover saleable metals in addition to meeting ever stricter environmental regulations.
On behalf of the Board of Directors
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.