Innovative Composites receives demand payment on convertible debenture

Company will have to repay C$2 million note no later than March 4

By Devika Patel

Knoxville, Tenn., Feb. 11 - Innovative Composites International Inc. said it has received a demand payment notice from KS Centoco Ltd., the holder of the company's C$2 million convertible debenture, requiring its repayment by no later than March 4.

"We are, of course, disappointed that the debenture holder chose to demand payment at this time," chief executive officer Terry Ball said in a press release. "In response, we are in active discussions with several potential sources of funding in both Canada and the United States, each of which has the ability to provide sufficient funds to repay the debenture. We are also continuing to manage our cash resources by working to generate new revenue and by looking at ways we can further reduce costs. Our cash resources remain unchanged, other than in the normal course as a result of our burn rate and this demand notice."

The company said that the demand notice has no impact on the ability of the company to continue its operations and business development activities between now and the demand notice payment date.

Based in Toronto, Innovative Composites makes and sells lightweight structural products utilizing fiber reinforced thermoplastics for use in the marine, construction, automotive, military, recreational vehicles, equine and furniture industries.

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