St. Felicien, Quebec, July 18, 2006--TechCana announced that it has been granted bridge financing for a total amount of $1,000,000 for its working capital needs until the closing of the transaction pertaining to the acquisition of certain assets from Domtar Inc. located at Malartic and Grand-Remous, which has been announced on June 19, 2006.
This bridge financing, which has been granted in equal parts by Domtar Inc., and Desjardins-Innovatech S.E.C., will bear interest at an annual rate of 10% and is repayable at the earliest of the closing date of the transaction related to the acquisition by TechCana of certain assets of Domtar Inc., or October 30, 2006.
The portion of this bridge financing granted by Desjardins-Innovatech S.E.C. is a transaction between related persons according to Regulation Q-27 which is exempted from valuation and minority approval requirements.
TechCana is the manufacturer, marketer and supplier of Evolution Hardwood Floors, a pre-finished engineered multi-layered wood flooring product offering structural stability, durability and resistance to warping. This product has the distinct advantage of being more stable than traditional solid hardwood flooring in either extremely humid or dry conditions owing to its patented gluing technology called "Cold Fusion LCL".
