KRYSTAL BOND INC – 90% Sale Of Entac Inc., Negotiations with Cement Companies ContinueStory Filed: Wednesday, December 19, 2001 1:11 PM EST Vancouver, BC, Dec 19, 2001 (Market News Publishing via COMTEX) — Krystal Bond Inc. announced that it has entered into an arms length Memorandum of Understanding with 1502046 Ontario Inc. to re-capitalize and acquire 90% of its wholly owned subsidiary Entac Inc. The transaction is expected to close by December 31, 2001. 1502046 Ontario Inc. is acquiring the $1 million Krystal Bond debenture issued in July 2000 when it purchased Entac and which is secured by 822 class A shares of Entac (76% of it outstanding capital). The principal amount and all interest accrued under that debenture will be cancelled in exchange for the Class A shares of Entac. In addition Krystal Bond will transfer 143 Class B shares of Entac to 1502046 Ontario Inc. for nominal consideration to hold 10% of its outstanding capital. 1502046 Ontario Inc. will also cause Entac to pay Krystal Bond $150,000 ($75,000 on closing and $75,000 in March 2002) on account of prior Krystal Bond advances to Entac. Entac currently owns a license right to manufacture and sell its Enviroseal products in Canada. Coincident with this restructuring, it is entering into a new license agreement for all of North America (USA, Mexico and Canada) and is committing US$5.4 million to acquire the North American License and build 4 new production plants. Krystal Bond previously announced that its ability to carry on operations was conditional on raising additional capital and to date it has been unsuccessful. Its efforts were impacted by the large amount of capital required to fund an Entac North American License, the unresolved terms related to a $1 million advance made by Blue Circle Industries PLC, recently acquired by the Lafarge Group, and the impact of the events of September 11th on capital markets. Jim Griffiths, President of Krystal Bond said, “Completing the Entac transaction will eliminate $1 million of debt and provide the company with $150,000 to settle some of its existing liabilities, while giving it a 10% interest in a larger North American operation.” ” Given our financial condition, that is an excellent result,” he added. Griffiths also said, “negotiations with Lafarge on its debt/licensing arrangements had been delayed because of Lafarge’s first priority to focus on integrating Blue Circle Industries into its operations.” In the last 30 days Krystal Bond has recommenced its negotiations with Lafarge and in addition, has opened a dialogue with other cement companies. The ongoing viability of Krystal Bond as a going concern and its and its ability to raise capital will depend on the outcome of those negotiations. Krystal Bond Inc., a publicly held industrial binder producer based in Toronto, owns the world-wide rights to a family of patented and proprietary formulations of high performance inorganic industrial binder technologies. These formulations have unique binding and stabilization properties; high compressive strength; high early strength; high cracking. The Canadian Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release. Legal notice to investors: Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Krystal Bond “expects, “believes,” “anticipates,” or words of similar import. Similarly, statements that describe the Krystal Bond’s future plans, objectives or goals, as well as the proposed transactions described in this press release, are also forward-looking statements. Such forward-looking statements generally involve known and unknown risks, uncertainties and other facts, which may cause the actual results, performance or achievements of Krystal Bond to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. CONTACT: TEL: (416) 614-6148 Jim Griffiths, Krystal Bond Inc. Internet: www.krystalbond.comURL: www.krystalbond.comMarketbyFax(tm) – To get the NEWS as it happens, call (604) 689-3041.(C) 2001 Market News Publishing Inc.
As a member of this site you will be able to receive aggregates news relating only to those categories that are most relevant to you, submit job listings for FREE, post questions in the Q&A, and more.Register Now
The Feature Your Company listing is your custom-made (by us) profile page that allows you to add any of the following content: text, videos, links, images. The page will also be listed on the Featured Company landing page. Over 560 unique aggregates users visit the site per day! Complete the enquiry form now to contact us.Contact us
Reach thousands of budget holders and decision makers by promoting your company on the longest established aggregate website in the US & Canada. Or advertise in our emails which are sent to opted-in subscribers according to their chosen categories. All advertising will display correctly on tablets and mobiles as this site is responsive.