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 DARTMOUTH, Nova Scotia, Oct. 14 /PRNewswire/ -- The following was issued today by Castle Capital Inc.:
 Castle Capital Inc. (the Company) is pleased to announce that it has entered into the following agreements subject to all necessary regulatory, governmental and/shareholder approvals.
 1. The Company has agreed to sell a license to manufacture and market the Company's Continuous Ablative Regeneration Technology in Scandinavia to a Norwegian Company, APSI Teknologi Skandinavia AS (APSI), for a consideration of $2,250,000 Cdn. and a 49 percent equity interest in APSI.
 2. The Company has agreed to acquire a 15 percent equity interest in Vindholmen Services AS (VSA), a Norwegian corporation, for a consideration of $750,000 Cdn. VSA and their associated companies are a diversified industrial group in Scandinavia with particular expertise in offshore fabrication, offshore servicing, shipbuilding and development of new technologies. Vindholmen Services AS have made a technology transfer for the rights to North America for two worldwide patent protected technologies to Vindholmen Newfoundland Inc., (1) oil/water separator and, (2) a new innovative Helideck design.
 3. The Company has agreed to acquire a 51 per cent equity interest in Vindholmen Newfoundland Inc. (VNI) for a consideration of a $500,000 equity injection and the issuance of up to $2,000,000 Cdn. in a new Convertible Preferred Share issue of the Company. The new Preferred Share, which will be approved at the Company's annual meeting on Oct. 29, 1993, will have a term of five years, a coupon of 0 percent, a par value of $10 per share, and be convertible into 2.5 common shares for each Preferred Share ($4/share). VNI is a steel fabricator and mechanical contractor with an existing infrastructure of over 45,000 sq. ft. of fabrication space situated in St. John's, Newfoundland. VNI, with an asset base of in excess of $8 million and an existing revenue base in excess of $8 million, is poised to increase its size substantially with the current activity offshore.
 4. The Company has agreed to purchase a 19 percent equity interest in ASIL Capital Inc. (ACI), which owns 100 percent of the equity in Atlantic Seaboard Industries Limited (ASIL), for consideration of $750,000. ACI will recapitalize ASIL conditional upon certain funds being advanced by various government agencies which are awaiting final approval. In addition, an agreement with various creditors of ASIL will be required to complete this transaction. The Company has the option to increase this equity position in ACI to 51 percent through the contribution of up to $2,250,000 in additional equity and the conversion of a pro rata amount of debt to equity by the other shareholder. The assets of ASIL include two fabrication facilities in Port Aux Basques, Newfoundland with in excess of 120,000 sq. ft. of manufacturing and office space and a substantial amount of equipment. ASIL, with this reorganization, will be in a position to compete for contracts in offshore developments in Atlantic Canada and the International marketplace. Further to this restructuring ASIL will have the capacity to become an international specialty fabricator through its association with the Castle Group of Companies.
 The conclusion of these transactions will add significantly to the asset and revenue base of the Company and provide additional capacity to further participate in the ongoing contracts to be awarded in the East Coast offshore development. In addition this acquisition will provide additional fabrication capacity for its Continuous Ablative Regeneration Technology. The sale of a license to APSI Teknologi Skandinavia AS will provide the Company with immediate revenue for its technology as well as open the door to the market potential in Europe for a coordinated effort to commercialize the technology in that license area.
 These transactions will not result in any change in control of the Company.
 -0- 10/14/93
 /CONTACT: Harold L. Woodworth, president and CEO, or Lowell R. Weir, C.A., executive vice president and CFO of Castle Capital Inc., 902-468-8682/

CO: Castle Capital Inc. ST: Nova Scotia IN: OIL SU: FNC

SH -- NY061 -- 2327 10/14/93 14:21 EDT
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Publication:PR Newswire
Date:Oct 14, 1993

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