Root Industries Inc. Announces the Sale of its Pool and Spa Division and Corporate Developments.TORONTO--(BUSINESS WIRE)--April 6, 1998--(CANADIAN DEALING NETWORK Canadian Dealing Network (CDN) The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. :RUTE.) Roots Industries Inc. ("Root" or the "Company") announces that it has sold its Pool and Spa Division to Sani-Marc Inc., a chemical manufacturer located in Victoriaville, Quebec Victoriaville (nicknamed "Victo") is a city in central Quebec, Canada, on the Nicolet River. Victoriaville is the seat of Arthabaska Regional County Municipality and a part of the Centre-du-Québec (Bois-Francs) region. , for a cash consideration of approximately $1.5 million. The Pool and Spa Market is seasonal in nature and it is the Company's view that to sustain growth, Root must continue to focus on improving the non-weather related aspects, of its operations. The Company's priority is to improve the productivity of its product mix, both through selective investments in high-quality opportunities and through the timely divestment of seasonal products and operations. The Company is pleased to announce that a new credit facility has been arranged with BNY BNY Bank of New York Financial Corporation - Canada ("BNY"), a subsidiary of the Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. . The credit facility is for a term of three years in the form of a revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . Management is delighted to be associated with BNY. The facility will be used to repay certain outstanding bank indebtedness and provide sufficient working capital to support the Company's continued growth. We also report that at the Special Meeting of Shareholders held on January 22, 1998, the proposed consolidation of the shares of the Company on a one-for-fifty basis was approved by the shareholders. It was also approved that the implementation of the consolidation will be at the discretion of the Board of Directors from a timing point of view. The Board and senior management of the Company want to ensure that consolidation does not create a situation where the price of the shares would become more volatile and result in devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. . There are currently 130,038,178 issued and outstanding common shares of Root. The shares of the Company are quoted on the Canadian Dealing Network in Toronto under the trading symbol Trading symbol See: Ticker symbol "RUTE". CONTACT: Root Industries Inc. Mr. Jerry Eluck, 416/746-3700 416/746-3773 (FAX) Ms. France Crawford, 416/862-0887 416/862 2204 (FAX) |
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