CALGARY, Nov. 16 /CNW/ - Winalta Inc. (Winalta) announces that it has signed an amending and extension agreement with its primary lender to extend the term of its various outstanding loans, including its primary operating facility, to January 1, 2010. Winalta is in continued discussions with its primary lender to reach a longer term agreement for its existing and future lending needs.
Over the past 12 months Winalta has been reviewing and eliminating excessive overhead costs. As a result, selling, general and administrative (SG&A) expenses have been reduced by $5.4 million on an annualized basis from November 2008 to October 2009. Not all SG&A reductions made to date are reflected in the October 2009 annualized figures and Winalta is continuing to review and reduce its SG&A expenses.
"We are executing on our plans to reduce overhead and debt. We are working with our lenders, who understand our plans, recognize our efforts to date and are willing to work with us through these challenging economic conditions. As we enter fiscal 2010, our revenue and overheads will be more closely aligned as to allow Winalta to return to profitability," says Ron Berg, President and CEO, Winalta Inc.
Winalta Inc. is an integrated company with three main operating divisions, Homes, Industrial, and Manufacturing. The Homes Division sells CSA approved homes via retail centers, communities and supply arrangements. The Industrial Division leases portable industrial accommodations and provides construction services that include excavating, aggregate trucking and paving. The Manufacturing Division builds CSA approved homes and portable industrial accommodations from facilities near Spruce Grove, Alberta.
Winalta Inc. shares trade on the TSX Venture Exchange under the symbol "WTA.A".
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The words "believe", "expect", "intend", "anticipate", or any variation of such words and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Winalta undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by securities laws.
SOURCE Winalta Inc.
For further information: For further information: Business Contact: Ron Berg, President & CEO, Winalta Inc., Tel: (780) 960-6900, Fax: (780) 962-9523, www.winaltainc.com; Austin Fraser, VP Corporate Development and Investor Relations, Tel: (403) 475-4698