TORONTO, Dec. 18 /CNW/ - Added Capital Corp. (TSXV: LS) ("Added")
announced its engagement of Northern Securities Inc. ("Northern") as exclusive
financial advisor in connection with Added's mergers and acquisitions
strategy. Added completed its qualifying transaction with Lakeside Steel
Corporation ("Lakeside") on November 30, 2007 in which Added acquired all the
issued shares of Lakeside. Lakeside is a diversified steel pipe and tubular
manufacturer based in Welland, Ontario.
In connection with the qualifying transaction, Added filed on Sedar a
Filing Statement dated November 19, 2007 in which, among other matters, Added
outlined its mergers and acquisitions strategy for Lakeside. Added believes it
has the potential to implement mergers and acquisitions and either potentially
build a larger company with considerably more scale or alternatively to
potentially carry out a sale of Lakeside. Added will review both alternatives
with a view to creating shareholder value.
Northern will be paid an aggregate engagement fee and work fee of
$100,000 by Added. If Lakeside is sold, Northern will be paid a success fee
equal to the following: 1.5% of the first $10 million in gross aggregate value
which includes debt ("Value"); 2% of the Value above $10 million to
$20 million; 2.25% above $20 million in Value to $34 million; 2.75% of Value
above $34 million to $44 million; 3.5% above $44 million in Value to
$61 million; and 5% of Value in excess of $61 million.
If Lakeside acquires or merges with a company, Northern will be paid a
fee equal to 3% of the first $10 million in Value; 2.5% of the Value in excess
of $10 million to $20 million; 2% of the Value in excess of $20 million to
$30 million; 1.5% of the Value in excess of $30 million to $50 million; and
1.25% of the Value in excess of $50 million.
Vic Alboini, Chairman and CEO of Added, stated: "Pure and simple, our
objective is either to buy one or more companies or to sell Lakeside, all for
the purpose of delivering value above the financing price of $0.42 per share
in the recently completed $10 million financing."
Northern is a related party to Added, as Vic Alboini is the Chairman and
CEO of both Added and Northern.
About Added Capital Corp.
Added is the parent company of Lakeside. Lakeside, located in Welland,
Ontario, is a diversified steel pipe and tubing manufacturer. Lakeside's list
of customers includes large oil and gas, mining, automotive and commercial and
industrial supply companies. In addition to supplying its products in these
industries, Lakeside manufactures pipe and mechanical tubing for the resale
market, which is sold to distributors in Eastern Canada and the Northeastern
United States. Lakeside manufactures a variety of products for these
industries including oil well tubing and casing, mechanical tubing, pressure
tubing, automotive tubing, hollows for redraw, line pipe, heating and plumbing
pipe, drill rod and specialty tubing. Lakeside serves customers worldwide,
either directly or indirectly, in Canada, China, Australia and the United
For further information:
For further information: Vic Alboini, Chairman and Chief Executive
Officer, Added Capital Corp., Tel: (416) 644-8110, Fax: (416) 644-0271, Email: