BRAMPTON, ON, July 9 /CNW/ - Norwall Group Inc. (TSXV: NGI) ("Norwall") announced today that it has entered into an agreement of purchase and sale to sell its property located in Brampton, Ontario for $6,800,000. The estimated net proceeds to Norwall, net of real estate commission, repayment of the first mortgage and other costs are expected to be approximately $2,700,000. The transaction is conditional upon the satisfaction of certain requirements. The transaction is expected to close during the fourth quarter of 2010.
The sale of the land and building is consistent with Norwall's decision to outsource its wallpaper manufacturing in North America due to the continued erosion of the global wallcovering markets, the appreciation of the Canadian dollar and the fact that most of Norwall's sales are denominated in US dollars.
Norwall manufactures and designs quality residential wallpapers and borders and distributes them to thousands of home centers, specialty stores and mass merchants in Canada and through its wholly-owned operating subsidiary, Patton Wallcoverings, in the United States and in 52 countries worldwide.
Certain statements included in this release contain words such as "could", "expects","expectations", "may", "anticipates", "believes", "intends", "estimates" and "plans" (and similar expressions) and constitute "forward-looking statements" within the meaning of applicable securities law. These statements are based on Norwall's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Norwall and its subsidiaries operate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which are difficult to predict and may cause the actual results, performance or achievements of Norwall, or outcomes or results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, such factors which are described in Norwall's management's discussion and analysis of operations and other filings with Canadian regulatory authorities. These statements, although considered reasonable by Norwall at the date of this press release, may prove to be inaccurate and consequently Norwall's actual results could differ materially from its expectations as set out or implied in this release. Unless otherwise required by applicable securities laws, Norwall disclaims any intention or obligation to update or revise any forward-looking statements.
SOURCE NORWALL GROUP INC.
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