RICHMOND, BC, March 28 /CNW/ - Ascalade Communications Inc. ("Ascalade"
or "the Company") (TSX: ACG) today announced that in connection with the
protection from its creditors under the Companies' Creditors Arrangement Act
(CCAA), the British Columbia Supreme Court granted an order authorizing and
approving the sale of Ascalade's property located in Richmond, British
Columbia for $8.4 million. The property is currently held by one of Ascalade's
wholly-owned subsidiaries. The Richmond property is an approximately
40,000 square foot building that houses Ascalade's corporate headquarters and
its research and product development. The sale of the property is expected to
close on March 31, 2008.
Any recovery for creditors and other stakeholders, including
shareholders, is uncertain and is highly dependent upon a number of factors,
including the recovery from the sale of the Company's factory and equipment in
the People's Republic of China, potential claims from customers and suppliers
and the outcome of the Scheme of Arrangement in Hong Kong.
Deloitte & Touche Inc., in its capacity as monitor of Ascalade, will
continue to work with Ascalade on the restructuring or winding up of the
Forward Looking Information:
The discussion and analysis in this news release, including the Company's
future plans, contains forward-looking statements under securities laws that
involve risks and uncertainties. When used in this news release the words such
as "will", "expects" and "plans" and similar words and expressions generally
identify forward-looking statements.
These statements are not historical facts, but reflect our current
expectations. The results or events predicted in such forward-looking
information may differ materially from actual results or events. When relying
on the Company's forward-looking information to make decisions, investors and
others should carefully consider the foregoing factors and other uncertainties
and potential events.
The Company has assumed a certain progression, which may not be realized.
Additionally, the Company made a number of assumptions about the market,
operations, finances and transactions. Certain factors that could cause
results or events to differ materially from our current expectations include,
among others, the completion of the sale of our Richmond property, our ability
to implement our strategies and plans.
The Company has also assumed that the material factors referred to in the
previous paragraph will not result in such forward-looking information to
differ materially from actual results or events. However, the list of these
factors is not exhaustive and is subject to change and there can be no
assurance that such assumptions will reflect the actual outcome of such items
These forward-looking statements are subject to a number of risks,
uncertainties and assumptions that could cause actual results or events to
differ materially from current expectation; including matters discussed more
fully under "Risk Factors" in the MD&A portion of our 2006 Annual Report and
our 3rd Quarter 2007 results, which is available at www.sedar.com.
These risks and uncertainties also include, among other things, risks
related to: uncertainty involved in Court proceedings and the implementation
of a plan under the CCAA restructuring and the completion of the sale of our
Richmond property, inability to find a buyer for business assets, loss of
customers, economic downturn in key geographic markets, availability and cost
of labor, cost of material, labor relations, power constraints, environmental
laws, insufficient production capacity to satisfy customer demand, impact of
restructuring on operations stability, failure to develop new products or
enhance existing products, customer supplier litigation, ability to maintain a
workforce and factory operations, government and regulatory challenges in
China, ability to recover assets in China, reduction of production costs and
management of production levels. There can be no assurance that our
expectations will prove to be correct. Consequently, all forward-looking
statements made are qualified by these cautionary statements and other
cautionary statements and factors contained herein.
Except as required by law, Ascalade disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
For further information:
For further information: visit us online at: www.ascalade.com