CALGARY, Dec. 22 /CNW/ - Winalta Inc. ("Winalta" or the "Corporation") (TSXV - WTA) wishes to announce that it has entered into shares for debt arrangements with four of the Corporation's unsecured creditors, representing approximately 90% of Corporation's outstanding promissory notes, including a company controlled by Mr. Artie Kos, President and Chief Executive Officer of the Corporation. The Corporation has today issued an aggregate of 4,402,802 common shares at a price of $0.50 per share and has in exchange, retired debt in the aggregate amount of $2,201,401. In addition to the required 4 month hold period which expires April 23, 2011, the shares are subject to a contractually imposed hold period which will expire on December 22, 2011.
A company controlled by Mr. Kos has received an aggregate of 3,814,764 shares of the Corporation in exchange for the settlement of debt in the aggregate amount of $1,907,382. Shares which have been issued to this company are, in addition to the hold periods reflected above, subject to a contractual escrow with the TSX Venture Exchange. These arrangements are subject to final regulatory approval and will not result in a change of control.
"This conversion helps improve Winalta's balance sheet as we actively negotiate term financing to replace existing bridge financing. This is the initial step towards positioning Winalta to grow its Wellsite fleet to meet increased demand as an Oilfield Service provider." says Artie T Kos, Winalta Inc. President and CEO.
Winalta Inc. is an Oilfield Service provider that rents portable industrial accommodations and provides catering services to the energy sector.
Neither TSX Venture Exchange 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 release.
Certain information set forth in this press release, including management's assessment of future plans and new financing arrangements, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which, including market conditions, are beyond our control. Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or outcomes could materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by forward looking statements will transpire or occur, or if any of them do so, what benefit Winalta will derive there from. The Corporation does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
For further information: For further information:
David Hopley, Chief Financial Officer
Phone: (780) 960-6900
Austin Fraser, Senior Vice President
Phone: (780) 960-6900