PUSLINCH, ON, April 2 /CNW/ - Forterra Environmental Corp. (TSX-V:
FTE-V), an emerging leader in the production and sale of premium organic
soil-enrichment products based on worm castings, today announced that it has
completed its previously announced non-brokered issue of 12% non-convertible
secured debentures to raise gross proceeds of $600,000.
The offering was fully subscribed by accredited investors, including
members of the company's Board of Directors. The debentures will become due
and payable on the maturity date of March 31, 2011, subject to earlier
redemption by Forterra after six months. Interest on the debentures is
calculated and payable quarterly. For the first nine months, the interest owed
will accrue until it is paid out to the investors commencing on December 31,
2009. Payments will be made quarterly thereafter. In addition, 2,400,000 of
Forterra's common shares at a deemed value of $0.05 per share were granted as
a bonus to the investors. Investors will receive four such bonus shares for
each dollar invested.
Forterra will use the proceeds of this financing for working capital to
support its anticipated increased production volume and sales, and to purchase
automation equipment for its plant in Puslinch, Ontario. The company expects
that the new equipment will result in improved operating efficiency and lower
About Forterra Environmental Corp.
Forterra manufactures and markets environmentally friendly soil
enhancers, using worm castings, which boost fertility while restoring the soil
with organic matter for sustainable, longer-term benefits, including stronger
root growth, and drought and pest resistance. Forterra products contain only
organic material. They are ideal for golf courses, sports fields, lawn care,
parks, nurseries, orchards, and vineyards. Essentially, Forterra uses red
wriggler worms to convert organic material into vermicompost or worm castings.
Worm castings contain micronutrients, which are required for healthy plant
development. Worm castings also contain microbes, which increase the rate at
which plants take up available macronutrients and micronutrients. Further
information is available on the company's website at www.forterra.com.
This news release contains forward-looking statements based on current
expectations. These forward-looking statements entail various risks and
uncertainties that could cause actual results to differ materially from those
reflected in these forward-looking statements. Such statements are based on
current expectations, are subject to a number of uncertainties and risks, and
actual results may differ materially from those contained in such statements.
These uncertainties and risks include, but are not limited to, availability of
resources, competitive pressures, changes in market activity, the ability to
sign contracts with customers, the development of markets for worm castings,
its ability to breed and maintain a sufficiently large worm population, and
regulatory requirements. Risks and uncertainties about Forterra's business are
more fully discussed in the company's disclosure materials, including its
annual information form and MD&A, filed with the securities regulatory
authorities in Canada. Forterra assumes no obligation to update any
forward-looking statement or to update the reasons why actual results could
differ from such statements.
Neither the TSX Venture Exchange Inc. 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
For further information:
For further information: Investor and Media Relations: Richard W.
Wertheim, Wertheim + Company Inc., Email: email@example.com, (416)
594-1600, (416) 518-8479 (cell)