TORONTO, Oct. 7 /CNW/ - Newlook Industries Corp. ("Newlook") (TSXV: NLI)
is pleased to announce that it intends, subject to regulatory approval, to
enter into a series of agreements to invest in cleantech energy opportunities.
After a decade of market maturation, clean technology, or "cleantech",
has been established as a viable investment category. Cleantech should not be
confused with the terms environmental technology or "green tech" popularized
in the 1970s and '80s. Cleantech refers to innovative technology and related
business models that combine to create competitive returns while providing
solutions to global challenges. Where greentech or envirotech represent the
highly regulatory driven, more traditional end-of-pipe/last resort technology
with limited opportunity for attractive returns, cleantech is driven by market
economics and offers financial upside and sustainability.
Newlook has agreed to make a $615,000 investment in PowerPlay Energy
Corp. ("PowerPlay") and to provide a 12%, $1,000,000 senior secured loan to
Sunbay Port Hope Inc. ("Sunbay Port Hope"). PowerPlay is a private corporation
organized to pursue a series of opportunities in plasma gasification. Sunbay
Port Hope is a wholly-owned subsidiary of Sunbay Energy Corp. ("Sunbay"),
which is a majority-owned subsidiary of PowerPlay. Sunbay Port Hope represents
the first of these opportunities.
The investment in PowerPlay, if fully consummated, would result in
Newlook holding 19.9% of the common shares of PowerPlay. Under the terms of
the investment, Newlook will subscribe for 250,000 PowerPlay common shares
from treasury at $1.00 per share, and acquire 300,000 common shares from
PowerPlay's affiliates at $0.50 per share for $150,000, payable in five
installments beginning October 15, 2008. Newlook will also receive an option
to buy 200,000 common shares from PowerPlay's affiliates at $1.00 per share,
expiring December 31, 2008.
The loan to Sunbay Port Hope will be provided in installments beginning
upon receipt of regulatory approval and ending on May 1, 2009. The loan will
be secured by a general security agreement over the assets of Sunbay Port Hope
and will mature on August 31, 2011. If Newlook performs under the loan
agreement it will receive 10% of the outstanding common shares of Sunbay Port
Hope. The purpose of the loan is to assist Sunbay Port Hope to acquire the
required permits and approvals to build a cleantech energy recovery plasma
gasification facility in Port Hope, Ontario.
"This is an exciting transaction," said Mr. John Simmonds, Chairman and
CEO of Newlook, today. "Upon due diligence of this company and sector, it is
clear that significant opportunities exists in the cleantech sector.
Energy-from-waste, or "energy recovery" technology is rapidly changing the way
people look at what we do with the incredible amounts of garbage we generate.
PowerPlay and its subsidiaries have some exciting projects that we are pleased
to be a part of."
Upon closing of the private placement, Mr. Simmonds will be appointed to
PowerPlay's Board of Directors. Additionally, Newlook will be offered the
opportunity to acquire up to 100,000 PowerPlay common shares from PowerPlay
affiliates at $0.15 per share.
Newlook will also be provided right of first refusal to provide any seed
finance to future energy projects falling under Sunbay or its subsidiaries.
About PowerPlay Energy Corp.
PowerPlay Energy was established to develop cleantech solutions, with a
distinct focus on projects employing energy-from-waste tools and
technology-specifically plasma gasification.
PowerPlay is positioned as an originator/incubator, identifying project
opportunities, getting involved at inception, providing funding, sharing
management and technical expertise. The result: a family of cleantech
companies and projects helping to recover energy from waste and change the way
the world looks at garbage.
About Newlook Industries Corp.
Newlook Industries Corp., headquartered in Toronto, Ontario is a publicly
traded company listed on the TSX Venture Exchange. For more information please
call (416) 477-5656 or refer to www.sedar.com.
The management of the company, who take full responsibility for its
content, prepared this press release. The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy of
this release. This press release contains forward-looking statements relating
to future events and results that are based on Newlook's current expectations.
These statements involve risks and uncertainties including, without
limitation, Newlook's ability to successfully develop and market its products,
consumer acceptance of such products, competitive pressures relating to price
reductions, new product introductions by third parties, technological
innovations, and overall market conditions. Consequently, actual events and
results in future periods may differ materially from those currently expected.
For further information:
For further information: John G. Simmonds, Chief Executive Officer,
Newlook Industries Corp, Telephone: (416) 477-5656 x301