Capital Reserve Canada Signs Letter of Intent to Purchase United Fabrication and Welding Ltd.EDMONTON, Alberta -- Capital Reserve Canada Ltd. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CRSVF) Capital Reserve Canada ("CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. " or "the Company) is pleased to announce that the Company has entered into a Letter of Intent ("LOI LOI Letter of Indemnity (international trade and carriage business) LOI Letter Of Intent LOI Loss On Ignition LOI Letter of Inquiry LOI Lack Of Information LOI Lack of Interest LOI Letter of Invitation LOI List Of Items ") for the purchase of all of the shares and assets of United Fabrication & Welding Ltd. ("United") The Company's main assets include a modern, and well equipped Canadian Welding Bureau (CWB CWB Canadian Wheat Board CWB Central Weather Bureau CWB Canadian Welding Bureau CWB Causeway Bay (Hong Kong) CWB Corpus Workbench CWB Certified Wildlife Biologist CWB Child Welfare Board ) approved facility with 2 buildings containing a total of 17,000 sq. feet of space, a 25 acre site with storage, tank refurbishing up to 1,000 bbl. United also has a 12 x 80 ft. paint shop that can handle projects up to 10 tons in size. It's location in Two Hills, Alberta Two Hills is a town in central Alberta, Canada. It is located km ( mi) east of Edmonton at the junction of Highway 45 and Highway 36. Demographics In 2006, the town had a populationof 1,109. with 15 skilled employees positions the Company for low-cost, and high quality metal fabrication work for clients in the oil and gas industry, including the major Alberta Oil Sands projects. This has allowed United to grow its client base and sales. In the past fiscal year, it earned $689,000 on $2.5 million in gross revenue. Upon completion of the transaction United will sign a sales and distribution contract with Behral Canada a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of CRC. In addition United will assist Behral in Fabrication and Manufacturing of its "SBOP SBOP State Bank of Patiala (India) SBOP State Board of Pharmacy " line of Blowout Preventers. Contemplated terms of the LOI are set forth below: * Purchase price will be $805,000, consisting of 8.5 million Class A Common Shares, or an agreed value negotiated between United and the Company, and $200,000 CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. . * The Company also agrees to assume a $125,000 mortgage held by the vendor for the property. The owner of United, Mr. Henry Neufeld, will remain the President in charge of this division. Says Mr. Neufeld, "I am pleased to join Mr. Don Getty and his team at Capital Reserve in building a regional powerhouse servicing the oil and gas sector. I believe that United's cost-structure within Capital Reserve will provide it with a foundation for future success in providing welding and fabrication services to the oil and gas industry." States, Mr. Steve Claussen, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President of CRC: "The acquisition is a strong strategic fit, allowing CRC to enhance its position in the oil and gas service industry, and quickly accelerate revenue growth." About United Fabrication & Welding Founded by Henry Neufeld, United has 15 years of hands on experience and can handle a broad range of fabrication requests. It currently has one overhead crane with a capacity of 10 tons. Welding processes that include electrode, hardware, and metal core. It is CWB class 2 certified, and can handle specialty processes, including Aluminum TIG n. 1. A game among children. See Tag. 2. A capacious, flat-bottomed drinking cup, generally with four handles, formerly used for passing around the table at convivial entertainment. & MIG fabrication along with TIG & MIG welding Stainless Steel fabrication and welding. In addition to its core competencies in metal fabrication, United has specialized spray urethane urethane (yoor´ithān´), n ethyl carbamate used as an anesthetic agent for laboratory animals, formerly used as a hypnotic in humans. application capabilities for fiberglass applications. Further information on United can be found on the Internet: www.unitedfab.ca About CRC CRC is an oil and gas services company based in Edmonton, Alberta. Through their wholly owned subsidiary, Behral Canada, Inc., the Company provides a full range of products to the Oil & Gas Industry. Our focus leads us in the direction of building partnerships and strategic alliances for long-term growth with in these sectors. The Company has a second wholly owned subsidiary, Two Hills Environmental, to assist with the storage CO2 and provide underground storage for problem waste from oil & gas companies. Cautionary Note Regarding Forward-Looking Statements Statements in this press release regarding the company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. The company wishes to caution readers not to place undue reliance on such forward-looking statements and as such, speak only as of the date made. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, but not limited to, those discussed in the Company's latest 20-F dated June 21st, 2007. |
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