NISKU, AB, Oct. 6 /CNW/ - Wood Composite Technologies Inc. (TSX-V: WCT) (the "Company") is pleased to announce it has closed the sale of one of its two Nisku properties and retired its secured credit facility.
Further to the announcement on July 23, 2009, the Company has completed the sale of its extrusion plant location in Nisku, Alberta to GML Holdings Ltd. for gross proceeds of $2 million cash. The Company has used a portion of the proceeds from the sale to pay out and retire the remaining $750,000 secured credit facility first disclosed on May 9, 2008, with amendments disclosed on July 10, 2009, leaving the Company free of long term debt. The remaining sale proceeds will provide the Company with additional working capital.
The Company has relocated its executive offices to its pellet mill location. This move, together with the strategic arrangement with Westech Building Products Limited announced on October 2, 2009, should allow the Company to achieve added efficiency by reducing fixed overhead costs and duplication and realizing other operational efficiencies.
About Wood Composite
Wood Composite is listed on the TSX Venture Exchange under the symbol "WCT" and maintains certain patents and processes that are proprietary to the Company which utilize recycled post industrial materials. The Company presently manufactures and markets a composite decking system through its wholly-owned subsidiary, Millennium Decking Inc.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Statements set out in this news release that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may include expectations, opinions or guidance that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management of the Company as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to, risks, uncertainties and other factors that are beyond the control of the Company. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information contained in this news release. Assumptions relating to certain forward-looking information contained in this news release are set out above in this news release. Although the Company believes that the expectations reflected in the forward-looking statements set out in this news release are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of the Company contained in this news release are expressly qualified, in their entirety, by this cautionary statement. The forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to the Company and its securities can be found in the disclosure documents filed by the Company with the securities regulatory authorities (including the Company's annual financial statements for the fiscal year ended December 31, 2008, which was filed on SEDAR on April 14, 2009), available at www.sedar.com.
SOURCE Wood Composite Technologies Inc.
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