Forterra Environmental Corp. (TSXV:FTE)
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PUSLINCH, ON, July 19, 2011 /CNW/ --
PUSLINCH, ON, July 19, 2011 /CNW/ - At the request of the TSX Venture
Exchange (TSXV), Forterra Environmental Corp. (Forterra or the company)
(TSXV: FTE), a manufacturer, marketer, and seller of organic soil
amendment products based on worm castings, today issued a statement
regarding the status of the company's bank account.
On June 10, 2010, Forterra issued a news release disclosing that on June
4, 2010, the Canada Revenue Agency (CRA) had seized the company's bank
account as the result of the company's failure to make required tax
source deductions and remittances.
Forterra is continuing to discuss with CRA the company's outstanding
liability regarding the payment of source deductions. As reported in
Forterra's Management Discussion and Analysis for the 2011 first
quarter, filed on SEDAR, the company is continuing to operate without
banking facilities. Forterra's Directors have chosen to support the
business through personal financial resources resulting in significant
loans outstanding to shareholders, as reported on the balance sheet,
and increased financing through debentures.
On May 17, 2011, Forterra announced that it has entered into an
agreement to merge with OSM Solar Corp. (OSM). The transaction would
constitute a reverse takeover (RTO) pursuant to the policies of the
TSXV. If the RTO is approved by shareholders, Forterra will become
part of OSM's business enterprise and will bank accordingly. Since OSM
will assume the liabilities of Forterra, CCRA matters that may be still
outstanding, if any, will be paid as agreed or retired on closing of
the transaction. This ensures that Forterra is free to seek any
banking arrangements it deems appropriate outside of the OSM
relationship should management deem that appropriate. Forterra will
provide additional information in the Information Circular for the
proposed RTO transaction, which it expects will be provided to the TSXV
for review within the next four-to-six weeks.
About Forterra Environmental Corp.
Forterra manufactures, markets, and sells environmentally friendly
organic soil amendment products based on worm castings, which boost
fertility while restoring the soil with organic matter for sustainable,
longer-term benefits, including stronger root growth, and drought and
pest resistance. Forterra products contain only organic material.
They are ideal for golf courses, sports fields, lawn care, parks,
nurseries, orchards, and vineyards. Essentially, Forterra uses red
wriggler worms to convert organic material into vermicompost or worm
castings. Worm castings contain micronutrients, which are required for
healthy plant development. Worm castings also contain microbes, which
increase the rate at which plants take up available macronutrients and
micronutrients. Further information is available on the company's
website at www.forterra.com.
Forward-Looking Statements
This news release contains forward-looking statements based on current
expectations. These forward-looking statements entail various risks
and uncertainties that could cause actual results to differ materially
from those reflected in these forward-looking statements. Such
statements are based on current expectations, are subject to a number
of uncertainties and risks, and actual results may differ materially
from those contained in such statements. These uncertainties and risks
include, but are not limited to, availability of resources, competitive
pressures, changes in market activity, the ability to sign contracts
with customers, the development of markets for worm castings, its
ability to breed and maintain a sufficiently large worm population, and
regulatory requirements. Risks and uncertainties about Forterra's
business are more fully discussed in the company's disclosure
materials, including its annual information form and MD&A, filed with
the securities regulatory authorities in Canada. Forterra assumes no
obligation to update any forward-looking statement or to update the
reasons why actual results could differ from such statements.
Neither the TSX Venture Exchange Inc. 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. Neither the TSX Venture Exchange nor its Regulation Services
Provider has passed upon the merits of the proposed RTO transaction. A
definitive agreement between Forterra and OSM for the proposed RTO has
not been signed. There can be no assurance that a definite agreement
will be signed or that, if signed, the proposed RTO will be completed.
Following the signing of the definitive agreement, Forterra will issue
a news release providing further details of the proposed RTO.
Subsequently, Forterra will issue a Management Information Circular
with respect to the required Annual and Special Meeting of Shareholders
that will be called to consider the proposed transaction.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/19/c6257.html
p Investor and Media Relationsbr/ Richard W. Wertheimbr/ Wertheim + Company Inc.br/ Email: a href="mailto:wertheim@wertheim.ca"wertheim@wertheim.ca/abr/ Phone : 416-594-1600br/ Cell : 416-518-8479br/ orbr/ Don Greenbr/ Chairman & Chief Executive Officerbr/ Phone: 905-634-8647br/ Email: a href="mailto:dmgreen@allstream.net"dmgreen@allstream.net/a /p