/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRES/
NISKU, AB, Dec. 20 /CNW/ - Wood Composite Technologies Inc. ("Wood
Composite" or the "Company") is pleased to announce a new working capital
The Company has negotiated secured debt financing for gross proceeds of
750,000 (the "Loan"). The Loan is fully subordinate to the secured $3,000,000
loan facility arranged with J.F. Mackie & Company Ltd. In consideration of the
new debt, which debt is to be repaid within 24 months, with interest payable
at the rate of 12% per annum, the Company has granted a Promissory Note, a
Security Agreement and a Memorandum of Agreement Charging Lands. The Loan does
not involve a voting or equity component and as such will not dilute the
current equity of the Company's shareholders, however the Loan materials
provide that in the event the Company completes an equity financing the Lender
will be required to either convert the Loan into Common Shares at a price that
is discounted by 10% from the financing price or have the Loan immediately
repaid. The proceeds of the Loan will be used for general working capital
The Loan may be considered, in part, a related party transaction within
the meaning of Ontario Securities Commission ("OSC") Rule 61-501 (the "OSC
Rule") on the basis that an insider of the Company is advancing the Loan.
Michael Greenwood, a director of the Company and a holder of in excess of 10%
of the Company's voting securities is expected to advance the entirety of the
Loan. The formal valuation and minority approval requirements set out in the
OSC Rule do not apply to the Loan since, amongst other factors, the fair
market value of the insider's participation will not exceed 25% of the
Company's market capitalization and the Loan does not involve an equity or
The Company also announced that Kurt Lennarson has resigned as the VP
Sales of Wood Composite effective October 31, 2007. Mr. Lennarson joined Wood
Composite in May of 2005 and is pursuing other opportunities.
"On behalf of Wood Composite's board of directors and all its employees,
we would like to thank Mr. Lennarson for his contribution to the company and
extend our best wishes for him in his future endeavours," said John Greenwood,
President and CEO.
The Company also announced that Mr. Dennis Collins who holds VP Sales
position for Wood Composite's operating subsidiary, Millennium Decking Inc.,
will assist Wood Composite in filling Mr. Lennarson's former role.
About Wood Composite
Wood Composite is an Edmonton, Alberta based junior industrial company
focused on the development, manufacture and sale of alternative composite
building materials. Wood Composite has been marketing its business via
Millennium Decking Inc., which is a wholly owned subsidiary of Wood Composite.
Wood Composite maintains certain patents and processes that are proprietary to
the Company which combine recycled polyvinyl chloride (PVC) and wood flour to
produce a unique, attractive, durable and low maintenance exterior decking
product. Wood Composite is listed on the TSX Venture Exchange under the symbol
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: John Greenwood, President and Chief Executive
Officer, Telephone: (780) 955-3525, Facsimile: (780) 955-7075, Websites:
www.mdecking.com and www.woodcomp.com