SHERWOOD PARK, AB, April 22, 2016 /CNW/ - The Board of Directors of TerraPro Inc. ("TerraPro") is pleased to announce the closing earlier today of the plan of arrangement reorganizing TerraPro Group Inc., TerraPro, Headwind Capital Inc., TerraPro Mat Investors Group Limited Partnership #1, TerraPro Mat Investors Group Limited Partnership #2 and Axiom TerraPro Group Limited Partnership (the "TerraPro Reorganization"). Under the TerraPro Reorganization, substantially all of the assets of these entities were transferred to newly formed TerraPro which will continue the business previously operated by TerraPro Group Inc. under the same management team and a reconstituted Board of Directors.
As part of the TerraPro Reorganization, TerraPro obtained financing from Canadian Western Bank, as senior lender, Business Development Bank of Canada, as a subordinated lender and, as required by Canadian Western Bank and Business Development Bank of Canada as a pre-condition to funding, TerraPro Group Inc., as a subordinated lender. A portion of the proceeds of the financing was used to repay all of its outstanding obligations to the previous senior lender of TerraPro Group Inc. with the balance being used to pay outstanding obligations to third parties and transaction costs, and to fund working capital needs of TerraPro.
Jeff Schellenberg, Co-CEO & CFO of TerraPro stated, "While we have faced significant challenges to complete this reorganization, the closing of this transaction marks the start of a new era for our business. We have stabilized the foundation of our organization through this transaction and have taken significant steps to reduce our cost structure. As a result, we believe we are well positioned to take advantage of opportunities that may exist in the marketplace."
Colin Schmidt, Co-CEO of TerraPro stated, "With this transaction closing, I want to thank our customers, vendors and employees who have stuck with us throughout the last few months. We look forward to working together with you to fulfill our brand promise of providing products and services where and when our customers need them, delivered by the best people in the industry at what they do with pricing that is fair and predictable."
Jim Davis, Chair of the Board of Directors for TerraPro stated, "I look forward to working with Colin, Jeff and our newly constituted board of directors to maximize the potential of TerraPro on behalf of all its stakeholders."
Joining Mr. Davis on the Board of Directors will be Wade McGowan, Jeff Schellenberg, Colin Schmidt, L. Evan Baergen and Doug McCartney. Dwight Martin was appointed to the Board of Directors but resigned in connection with the closing of the TerraPro Reorganization to accept as role as a consultant on strategic matters with TerraPro. A qualified director will be appointed in due course to fill the vacancy created by his resignation.
About TerraPro Inc.
TerraPro Inc. provides environmental, terrain protection, and remote access solutions including mat sales, rentals, and logistics; earthworks and reclamation services; and surface equipment rentals to a customer base that spans across a wide array of industries. While its primary geographical focus is on Western and Northern Canada, the technology and products it represents are as applicable to similar challenges spanning the globe. TerraPro's industry leading technology, logistics expertise, and collaborative approach to solving its customers' access challenges position it as a preferred supplier for the products and services it provides.
SOURCE TerraPro Inc.
For further information: Jeff Schellenberg, Co-CEO & CFO, Terrapro Inc., #200, Brentwood Professional Place, 48 Brentwood Boulevard, Sherwood Park, AB, 780-449-2091, email@example.com, www.terraproinc.com