SHERBROOKE, QC, Aug. 1 /CNW Telbec/ - Shermag Inc. (TSX: SMG) today
announced that its credit facilities with Wachovia Finance Corporation
(Canada) ("Wachovia") have been assigned by the latter to Geosam Investments
Limited ("Geosam"). The assignment of the above-mentioned credit facilities
from Wachovia to Geosam was approved by the Superior Court of Québec on
July 31, 2008.
Geosam has agreed to replace Wachovia as Shermag's lender under
essentially the same terms and conditions presently governing the existing
credit facilities. The principal amendment to the credit facilities is the
increase of the interest rate to 12% per annum.
Geosam is an entity controlled by George Armoyan who is also the sole
George Armoyan is also the President and Chief Executive Officer of
Clarke, Inc. (TSX: CKI) which holds approximately 20% of the common shares of
Shermag has been operating under the protection of the Companies
Creditors Arrangement Act since May 5, 2008.
Shermag Inc., headquartered in Sherbrooke, Quebec, designs, produces,
markets and distributes high-quality residential furniture. The Company
employs approximately 729 people and is a manufacturer and importer with its
own manufacturing operations and global sourcing division.
This news release contains forward-looking statements about the Company's
operations, objectives, strategies, financial situation and performance. These
statements are made based on assumptions and management's best estimates with
regard to future events. However, the business of the Company is subject to
risks and uncertainties that could cause actual results to differ from
expected results. Important factors that could cause such differences are
changes in pricing pressure being exerted by competitors, particularly
Asian-based companies, or significant movement in the Canadian/US dollar
exchange rate. This is not an exhaustive list. A broader discussion of risk
factors that could affect future performance can be found in the Company's
Annual MD&A and Annual Information Form, filed with Canadian securities
regulatory authorities. Given these risks and uncertainties, investors should
not place undue reliance on forward-looking statements as a prediction of
actual results. The Company disclaims any intention or obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
For further information:
For further information: Shermag Inc., (819) 566-1515