/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
CALGARY, Oct. 7 /CNW/ - EarthFirst Canada Inc. ("EarthFirst" or the "Company") announced today that it has entered into an arrangement agreement to amalgamate with Maxim Power Corp. ("MAXIM") through a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). Closing is subject to certain conditions including completion of the previously announced sale by EarthFirst of its Dokie project, a vote by MAXIM shareholders in favour of the Arrangement, approval of the arrangement agreement by the Court of Queen's Bench of Alberta pursuant to EarthFirst's ongoing CCAA proceedings and customary regulatory approvals (including those of the TSX) required for the Arrangement. EarthFirst anticipates receiving gross proceeds of approximately $5 million which, net of any costs incurred to close the transaction, will be distributed to its creditors pursuant to its CCAA plan of arrangement. The transaction is expected to be completed in the first quarter of 2010.
Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation including the timing and continuance of CCAA protection and the timing of the completion of the Arrangement and the receipt of funds by EarthFirst. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of EarthFirst to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Specifically, some of the material risks include the uncertainty involved in the Court proceedings and the implementation of a Plan under the CCAA and in respect of the implementation of the Arrangement.
The forward-looking information contained in this news release represents the expectations of EarthFirst as at October 7, 2009, and, accordingly, is subject to change after such date. However, EarthFirst expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE EARTHFIRST CANADA INC.
For further information: For further information: Brian Trypka, Chief Restructuring Officer, EarthFirst Canada Inc., Tel: (403) 513-0780, Toll Free: (877) 513-0777, E-mail: firstname.lastname@example.org; Derren Newell, VP, Finance and Chief Financial Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll Free: (877) 513-0777, E-mail: email@example.com