NISKU, AB, May 13 /CNW/ - Wood Composite Technologies Inc. (TSX-V: WCT)
(the "Company") announced it has sold its extrusion equipment to
Westech Building Products ULC ("Westech") for gross proceeds of
$511,350 cash including GST. The extrusion equipment was previously
leased to Westech and was being used by Westech to provide custom
extrusion services to the Company as announced on October 2, 2009.
Although there is no formal agreement existing at this time for future
extrusion services, the Company expects that it will continue to be
able to secure additional custom extrusion services from Westech as and
when and if the Company determines it requires them, if ever.
The Company also announced that at the annual and special meeting of the
shareholders of the Company ("Shareholders") held on May 10, 2011 (the
"Meeting") the Shareholders approved a special resolution authorizing
the directors of the Company to, in their discretion, sell all or
substantially all the assets of the Company in one or more
transactions. This resolution constitutes the requisite shareholder
approval required by the Company to complete the sale of the Company's
Nisku property first announced on April 1, 2011. Both the Company and
the purchaser have now removed their conditions with respect to the
sale of the Nisku property and the transaction is expected to close on
July 24, 2011.
The Company also reported in relation to the Meeting that all of the
general business of the meeting (i.e. election of directors and
appointment of auditor) was approved. All the special business voted
on by Shareholders (i.e. the sale of the Company's assets) was also
approved. The Company also reported that certain matters of special
business described in the management information circular and proxy
statement dated April 5, 2011 (the "Circular") and the associated form
of proxy in respect of the Meeting, namely the "Stated Capital
Reduction Resolution", the "Reporting Issuer Resolution" and the "Share
Transfer Restrictions Resolution" described in the Circular, were
withdrawn from the agenda of the Meeting at the Meeting and were not
voted on. The decision to withdraw the matters of business was made by
the board of directors notwithstanding the anticipated voting results
with respect to the withdrawn matters. The Company may re-address one
or more of the withdrawn matters at a future meeting of the
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 TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
SOURCE Wood Composite Technologies Inc.
For further information:
President and Chief Executive Officer
Telephone: (780) 955-3525
Facsimile: (780) 955-7075