TORONTO, Dec. 31 /CNW/ - HydraLogic Systems Inc. ("HydraLogic" or the "Company") (NEX: HLS.H - OTC Pink Sheet: HYSYF) announced today that it will not be selling the HLS Ecolo Inc (Ecolo) and HydraLogic Systems Corp (Bug Defence) subsidiaries to the prospective buyers announced on October 12, 2010. The Company is pursuing alternative arrangements to repay the principle on the loan undertaken with Coghill Capital Management (Lender) on September 8, 2008.
"Over the past year we focused a great deal of attention on generating positive cash flow in each of our operating subsidiaries" stated Michael Beckley, President and Chief Executive Officer of HydraLogic Systems Inc. "Despite the interruption to business caused by the efforts to divest certain assets, this focus, along with further efficiencies made throughout the corporation, has had a positive effect on our consolidated earnings. With the emergence of the new year we will be taking a different direction in our effort to satisfy the Company's Lender and will be making every effort to expedite our transition back to the TSX.V through our reporting of the Company's financial statements".
About HydraLogic Systems:
HydraLogic is an innovator of engineered misting systems and proprietary environmental chemistries with reoccurring revenue distribution platforms. The company strives to be market leaders in providing technologies, through turnkey distribution and service models into the multi-billion dollar mosquito and odour control industries as Bug Defence and HLS Ecolo respectively.
HydraLogic Systems is traded on the NEX exchange - symbol: HLS.H
Forward Looking Statements
This press release contains certain "forward looking statements". These statements relate to future events or future performance and reflect expectations and belief regarding growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect current internal projections, expectations or beliefs and are based on information currently available. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. Although it is believed that the forward looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this press release, and HydraLogic Systems Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.
The NEX Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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