Innovative Composites International Inc. (TSXV:IC) announced a private placement of senior secured convertible debentures at CAD 1,000 per debenture for minimum gross proceeds of CAD 2,000,00 and maximum gross proceeds of CAD 2,500,000 on March 14, 2013. The debentures will be convertible into units of the company at any time prior to the maturity date at CAD 0.05 per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at CAD 0.05 per share for the first year and CAD 0.10 after that till the maturity, which is three years after the issuance. The debentures will bear an interest rate of 14% per annum and will be secured by all of the property of the company. The debentures will mature after five months of the issuance. The maturity date may be extended by the company on a month-to-month basis up to December 31, 2013.

The transaction will include participation from new investor Difference Capital Funding Inc. and insiders of the company. The insiders of the company intend to subscribe between CAD 250,000 and CAD 500,000 of the gross proceeds. As a part of the round Difference Capital Funding Inc. will appoint a representative on the company's board of directors. The company expects the transaction to close on or about March 26, 2013.

On August 14, 2013, the company announced that the transaction is expected to close on or about August 22, 2013.