Empire Closes Disposition Transaction for Certain Non-Core Assets
WINNIPEG, Manitoba, Dec. 12, 2019 (GLOBE NEWSWIRE) — Empire Industries Ltd. (TSX-V: EIL, OTC:ERILF) (“Empire”, “EIL”, “us”, “our”, “we” or the “Company”) is pleased to announce that further to its December 5, 2019 news release it has sold an aggregate of 17,588,126 common shares (together the “Tornado Shares” and each a “Tornado Share”) in the capital of Tornado Global Hydrovacs Ltd. (TSXV:TGH) (“Tornado”) to four third party purchasers at a price of $0.17 per Share for aggregate gross proceeds of CDN$2.99 million (the “Transaction”).
The Company paid a finder’s fee to an arm’s length finder equal to $0.01 per Tornado Share on a portion of the Tornado Shares sold pursuant to the Transaction (the “Finder’s Fee”). The Finder’s Fee was paid part in cash and part in-kind by the transfer of 58,823 Tornado Shares at a value of $0.17 per Tornado Share.The Company intends to use the net proceeds of the Transaction for general working capital purposes.Prior to the Transaction, Empire held 30,185,544 Tornado Shares representing approximately 23.8% of Tornado’s issued and outstanding shares, which Tornado Shares were acquired by Empire pursuant to a “shares for debt” transaction with Tornado on September 15, 2017. Upon closing the Transaction, Empire’s holdings in Tornado decreased by 13.9% to approximately 9.89% of Tornado’s outstanding share capital. Because Empire’s holdings in Tornado decreased by more than 2% as a result of the Transaction, the Company will file an Early Warning Report filed pursuant to National Instrument 62-103 (the “Report”) under its SEDAR profile at www.sedar.comAdditional information related to the disposition by Empire of the Tornado Shares is disclosed in the Report. To obtain a copy of the Report please contact Allan Francis, Vice President – Corporate Affairs and Administration, whose contact details are set out below.About Empire Industries Ltd.
Empire focuses on designing, supplying, and installing iconic media-based attractions and ride systems for the global theme park industry. Empire also uses these same turn-key integration services for special projects such as large optical telescopes and enclosures. Empire also has commenced an initiative to leverage its world class flying theater and attraction development capability on a co-venture ownership basis. Empire’s common shares are listed on the TSX Venture Exchange under the symbol EIL. Empire’s common shares are listed on the TSX Venture Exchange under the symbol EIL.For more information about the Company, visit empind.com or contact:Reader AdvisoryThis news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire’s business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, “booked”, ‘‘scheduled’’, “positions”, ‘‘estimates’’, “forecasts’’, ‘‘intends’’, ‘‘anticipates’’, “believes” or variations of such words and phrases or state that certain actions, events or results ‘‘may’’, “may be”, ‘‘could’’, “should”, ‘‘would’’, ‘‘might’’ or ‘‘will’’, ‘‘occur’’ or ‘‘be achieved’’. Such statements include statements with respect to (i) the use of the net proceeds and (ii) the filing of the Report on SEDAR. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Empire believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Empire. The forward-looking statements contained in this news release represent Empire’s expectations as of the date hereof, and are subject to change after such date. Empire disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.Neither the 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.