LAVAL, QC, Dec. 28 /CNW Telbec/ - Mercator Transport Group Corporation
("Mercator") (TSX-V : GMT) is pleased to announce the conclusion of an
agreement concerning the acquisition of Cap Canada Distribution Inc.'s assets
("Cap Canada"), including without limitation the exclusive rights of
distribution granted by the american corporation Eagle Picher Filtration &
Minerals ("Eagle Picher").
Cap Canada is a Canadian corporation specialized in distribution
throughout Canada. Its sole shareholder is Lactopur inc., a Canadian
corporation detained exclusively by Ararat Trust, whose beneficiaries are
Mr. Diran Avedian and his family members. During the fiscal year of 12 months
ended on March 31st, 2007, Cap Canada has realized a revenue of $3 048 047.
From April 1st, 2007 till October 31st, 2007, for a 7 month period, this
corporation realized a revenue of $1 871 246.
The counterpart paid by Mercator for the acquisition of these assets is
$311 500, which counterpart is payable by the issuance of 700 000 common
shares of the share capital of Mercator, for a unit price of $0,445.
This acquisition represents, for Mercator, the first step towards the
realization of its strategic plan aiming at the distribution activity's
integration to its already well established logistics activity, as announced
by the president and CEO of Mercator during the September shareholders annual
meeting. This acquisition will allow amongst others, to integrate value added
to Mercator's current services.
Subsequently to the conclusion of the agreement with Cap Canada, Mercator
has concluded a distribution agreement with Eagle Picher. This agreement aims
to the exclusive supply of diatomeous earth of Eagle Picher for the Canadian
territory for the next 5 years. The diatomeous earth is a granular absorbent
used notably in the automobile and industrial market in order to absorb oil
spills. Thus, Mercator obtains a distribution network of more than
2000 selling points in Canada.
Invited to comment on this acquisition, the President and CEO of
Mercator, Mr Jean-Pierre Apélian, declares: "We are very happy with the
agreement that has intervened aiming to the acquisition of Cap Canada's assets
as well as obtaining an exclusive distribution of diatomeous earth throughout
Canada. It concerns 2 strategic transactions for our corporation allowing the
establishment of a synergy between our various business activities. The
addition of such a distribution network will eventually allow Mercator to
strengthen its pan Canadian position of various products distribution".
Those transactions are concluded by Mercator with parties that are
dealing at arm's length. The conclusion of the final agreement relative to the
acquisition is planned for January 2008.
Mercator specializes in freight forwarding, international logistics and
distribution. Mercator offers high value-added services in global supply chain
management, and designs tailor-made solutions. Customer intimacy and
commitment differentiates Mercator in its ability to implement customers'
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Alexandre Jarry, Director and secretary,
Mercator Transport Group Corporation, (450) 667-8886