Trading Symbol: MCV
TORONTO, Oct. 2 /CNW/ - McVicar Industries Inc. ("McVicar" or the
"Company") announces that it has reached an agreement to sell its
twenty-seven percent (27%) equity interest in Sino Lion Nanjing Ltd., a joint
venture between McVicar and New York based Sino-lion (USA) Ltd. to develop,
manufacture and market specialized chemicals in the personal care market. In
the agreement, McVicar agrees to sell its 27% interest for a cash
consideration of US $850,000 to one of the directors of Sino Lion (USA) Ltd.
through a holding company.
Sino Lion Nanjing Ltd. was established to manufacture personal care
products mainly to supply to customers in the United States. Due to the
changes in the economic environment in the US, the potential major customer
delayed its major orders indefinitely. The joint venture has not been able to
achieve its expected results. As McVicar has acquired three China based
chemical companies, the Company considers that it is in its best interest to
sell the investment in Sino Lion and focus on the operations it has sole
ownership or control interest of to fulfill its China growth strategy.
McVicar is a TSX Venture Exchange listed company engaged in industrial
chemical production and distribution. The majority of McVicar's business
activities are focused in China.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for this news release.
For further information:
For further information: Ms. Exavier Peterson at: 55 University Avenue,
Suite 605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421,