Raydan Manufacturing Inc Announces Second Quarter Financial Results for Fiscal 2012

    




 EDMONTON, Dec. 30, 2011 /CNW/ - Raydan Manufacturing Inc, the "Company",  has provided financial results for the three and six month periods ended  October 31, 2011. These financial results and related MD&A are  available at the System for Electronic Document Analysis and Retrieval  ("SEDAR") web site at www.sedar.com. The highlights are noted below. 

 For the three month period ended October 31, 2011 or Q2 2012, the  Company recorded revenue of $2,146,940 and a net loss of $382,913  (includes net income of $2,488 from discontinued operations) vs revenue  of $2,470,792 and a net loss of $45,138 (includes $nil from  discontinued operations) in the comparative three month period ended  October 31, 2010 or Q2 2011. Gross profit margins in Q2 2012 were 8.3%  vs 22.1% in Q2 2011; thereby contributing to the net loss in Q2 2012. 

 Mr. Ray English, CEO, commented, "On November 30, 2011, the Company announced it entered into an  Arrangement Agreement with Link Suspensions of Canada Limited  Partnership and Link Manufacturing Ltd (collectively referred to as  "Link"), whereby Link will acquire substantially all the assets of the  Company. The purchase is structured as a plan of arrangement under the  Business Corporations Act (Alberta). It is expected to close in January  2012, following approval from shareholders and the Court of Queen's  Bench of Alberta. The Company expects to delist from the TSX Venture  Exchange and liquidate following completion of the purchase. We  anticipate shareholders will receive approximately $0.11 per common  share from the net proceeds under the Arrangement Agreement. The  proceeds should be distributed in two installments; the first being  $0.07 per share immediately following the requisite approvals and the  balance of approximately $0.04 within twelve (12) months thereafter".     

 Further information regarding the Arrangement Agreement and other  related documents can found at www.sedar.com, and in the Outlook section of the MD&A for the three and six month  periods ended October 31, 2011. 

 About Raydan Manufacturing Inc 

 Raydan Manufacturing Inc, based in Edmonton, Alberta, develops and  produces specialized suspension and coupling systems for trucks,  trailers and heavy equipment. Installations are completed at the  Company's chassis modification centre in Alberta. Established in 1992,  Raydan exports its innovative, high-quality products to end-users and  original equipment manufacturers (OEMs) in the heavy-duty truck, truck  crane, fire/rescue and other severe use sectors around the world. 

 The TSX Venture Exchange has not reviewed and does not accept  responsibility for the adequacy or accuracy of this release. 

 This new release contains forward-looking statements that involve risks  and uncertainties, which may cause actual results to differ materially  from the statements made. Potentially, many factors could cause our  actual results to vary materially from those described herein as  intended, planned, anticipated or expected. Raydan Manufacturing Inc.  does not intend and does not assume any obligation to update these  forward-looking statements. 

Raydan Manufacturing Inc.


CONTACT:  Raydan Manufacturing IncJoan Richardson Tel: [phone]Toll Free: 1-888-472-9326 [e-mail] www.raydanmfg.com 


    

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