WINNIPEG, Oct. 5 /CNW/ - Empire Industries Ltd. (TSX-V:EIL) ("Empire" or the "Company") announced today that it has sold the assets of the combustion technologies business of the Company's wholly owned subsidiary, Tornado Technologies Inc. ("Tornado") and its wholly owned U.S. subsidiary, Tornado Technologies, Inc. ("Tornado-US") to a privately-held enterprise. Proceeds of the transaction of $10.2 million, including the value of related working capital effective September 30, 2009, will be used by Empire to reduce existing debt obligations, substantially improving the Company's liquidity. Specific terms of the all-cash transaction were not released.
"As we have previously stated, we are pursuing the sale of non-core assets in an effort to reduce our debt levels, and this transaction is another concrete example of successfully concluding such initiatives" said Guy Nelson, Chief Executive Officer of Empire Industries Ltd.
Tornado will continue to carry on the business of the design, fabrication and sale of oil and gas production equipment, the design, fabrication and sale of hydrovac truck systems and the reconditioning and resale of high-quality used equipment for engineering companies and energy producers from its plants in Calgary and Stettler, Alberta under the name of Petrofield Industries.
About Empire Industries Ltd.
Empire Industries Ltd. adds value to steel through its leading, Western Canadian engineered products manufacturing and steel fabrication groups and its Fort McMurray-based strategic partnership in the maintenance services sector. The Company's business operations are focused on the infrastructure, commercial and industrial construction marketplace of Western Canada and select niche markets internationally. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.
This press release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE EMPIRE INDUSTRIES LTD.
For further information: For further information: please visit our web-site at: www.empind.com or contact: Guy Nelson, Chairman & CEO, Empire Industries Ltd., Phone: (416) 366-7977, Email: email@example.com; David Carefoot, Chief Financial Officer, Empire Industries Ltd., Phone: (204) 589-9305, Email: firstname.lastname@example.org; Trevor Heisler, Investor Relations, The Equicom Group Inc., Phone: (416) 815-0700 x 270, Email: email@example.com