Winalta Withdraws Previously Announced Private Placement



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/
    

    CALGARY, Sept. 11 /CNW/ - Winalta Inc. ("Winalta" or the "Company")
announces that it will not proceed with its previously announced private
placement of up to $10 million of units (the "Units") at a price of $2.35 per
Unit (the "Private Placement").
    Since the announcement of the Private Placement on August 20, 2008, the
capital markets have experienced significant weakness. Based on an analysis of
current market conditions, Winalta's ability to fund its business objectives
by different means, and the difficulty of raising funds on satisfactory terms,
Winalta has concluded that it is not in the best interests of the Company to
proceed with the Private Placement at this time.
    The expansion of Winalta's retail distribution system and purchase of
additional land can be funded out of new and existing credit facilities and
ongoing operational cash flows. Winalta believes it is in a solid financial
position and will continue to monitor the condition of the capital markets
regarding future equity financings.
    Winalta's business is organized into two main operational divisions,
Homes and Industrial. The Senior Management and Board of Directors of Winalta
is of the view that Winalta's business and future prospects are currently not
fully valued in the marketplace and, accordingly, that the Company's Common
Shares trade at a discounted price. The Board believes this discount may, in
part, be based on the organization of the Company into its two divisions, each
of which is subject to different valuation parameters. In an effort to unlock
shareholder value, the Board of Directors is currently in the preliminary
stages of evaluating the Company's structure with a view to potentially
"spinning-out" one of its business divisions into a new publicly listed
corporation. There can be no assurance that the review process will result in
a decision to proceed with any reorganization or transaction or if it is
proceeded with, that it will be completed in any specific time frame or will
result in any higher value for shareholders

    Winalta Inc. is a fully integrated company with two main divisions: Homes
and Industrial. The Homes Division manufactures CSA approved homes, develops
land and builds communities. The Industrial Division manufactures and leases
industrial accommodations, provides construction services that include
excavating, aggregate trucking and paving. Winalta Inc. shares trade on the
TSX Venture Exchange under the symbol "WTA.A".

    Forward-Looking Statements

    In the interests of providing Winalta shareholders and potential
investors with information regarding Winalta and the Private Placement and
evaluation process described above in this news release, including
management's assessment of future plans and operations, Winalta has included
in this news release certain statements and information that are
forward-looking statements or information within the meaning of applicable
securities legislation, and which are collectively referred to herein as
"forward-looking statements." The forward-looking statements in this news
release include, but are not limited to, statements with respect to: the
Private Placement, the use of proceeds received by Winalta from the Private
Placement; the evaluation process aimed at unlocking shareholder value; the
potential form of any reorganization or transaction resulting from that
evaluation process, and the anticipated benefits of such a reorganization or
transaction.
    Readers are cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the future circumstances,
outcomes or results anticipated in or implied by such forward-looking
statements will occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve numerous assumptions, known and unknown
risks and uncertainties, both general and specific, that contribute to the
possibility that circumstances, events or outcomes anticipated or implied by
forward-looking statements will not occur, which may cause the actual
performance and financial results in future periods to differ materially from
the performance or results anticipated or implied by any such forward-looking
statements. These risks and uncertainties include, among other things: risks
associated with the ability to obtain any necessary approvals, waivers,
consents, court orders and other requirements necessary or desirable to permit
or facilitate the Private Placement or a reorganization or transaction as a
result of the evaluation process (including, regulatory and shareholder
approvals); the risk that any applicable conditions of the Private Placement,
reorganization or transaction may not be satisfied; assumptions contained in
or relevant to the company's current corporate guidance; fluctuations in
market conditions; fluctuations in currency and interest rates; product supply
and demand; market competition; risks inherent in marketing operations
(including credit risks); potential disruption or unexpected technical
difficulties in developing new products and manufacturing processes; potential
failure of new products to achieve acceptance in the market; potential
replacement or reduced use of Winalta's equipment or systems; potential
failure to realize anticipated benefits of future acquisitions; difficulties
in retaining qualified trades workers; unexpected cost increases or technical
difficulties in obtaining equipment, equipment parts and materials, or in
constructing or modifying manufacturing facilities; unexpected difficulties in
marketing, manufacturing and transporting manufactured or modular housing, or
in marketing and provision of land development services; risks associated with
technology and the application thereof; risks associated with Winalta's
operations and potential changes in costs of obtaining adequate liability
insurance; the ability to generate sufficient cash flow from operations to
meet current and future obligations; the ability to access external sources of
debt and equity capital; changes in the mortgage industry or other
availability of credit to customers; the ability to secure adequate
transportation of products; changes in tax, environmental and other laws or
regulations or the interpretations of such laws or regulations; applicable
political and economic conditions; the risk of war, hostilities, civil
insurrection, political instability and terrorist threats; risks associated
with existing and potential future lawsuits and regulatory actions; and other
risks and uncertainties described from time to time in the reports and filings
made with securities regulatory authorities by Winalta. Although Winalta
believes that the expectations represented by such forward-looking statements
are reasonable, there can be no assurance that such expectations will prove to
be correct. Readers are cautioned that the foregoing list of important factors
is not exhaustive.
    Forward-looking information respecting the Private Placement is based
upon current market conditions. Assumptions relating to forward looking
statements generally include Winalta's current expectations and projections
made by the Company in light of, and generally consistent with, its historical
experience and its perception of historical trends, as well as expectations
regarding rates of advancement and innovation, generally consistent with and
informed by its past experience, all of which are subject to the risk factors
identified elsewhere in this document. Furthermore, the forward-looking
statements contained in this news release are made as of the date of this news
release, and, except as required by law, Winalta does not undertake any
obligation to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or
otherwise. The forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    

    %SEDAR: 00005154E




For further information:

For further information: Further information on Winalta is available on
the company's website, www.winaltainc.com, or by contacting: Business Contact:
Artie T. Kos, President & CEO, Tel: (780) 960-6900, Fax: (780) 962-9523;
Investor Relations Contact: Austin Fraser, Vice President Corporate
Development and Investor Relations, Tel: (403) 475-4698

Organization Profile

Winalta Inc.

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