ST. JOHN'S, Nov. 27 /CNW/ - Today, Rutter Inc. (TSX: RUT) announced that it has reached an agreement in principle to sell its Brookfield Road building in St. John's for $1,800,000 and enter into a seven year lease back with an average yearly commitment of $192,000. The proceeds from the sale will be used to pay off the existing mortgage of $585,000 and $1,000,000 to reduce a term loan at 12% without penalty, and the balance, after transaction fees, will be used as working capital. In commenting on the agreement, Fraser H. Edison President & CEO said "in addition to improving our operations we have been focused on reducing debt and interest cost and this is one more step in the execution of that plan". The agreement is expected to close in early January 2010.
About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. Multidisciplinary consulting engineering services including civil, structural, mechanical and electrical engineering (other than automation engineering) as well as environmental and construction management services are provided to a diverse client base which includes all levels of government and the oil and gas and industrial sectors. For more information see www.rutter.ca
This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.
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SOURCE Rutter Inc.
For further information: For further information: Karen Snook, Chief Financial Officer, Rutter Inc., (709) 368-3174; Dan Herder, Corporate Secretary, Rutter Inc., (709) 368-3174