FAIRLANE TRANSPORTATION ANNOUNCES PROPOSED PURCHASE OF A & B TRAIN CARRIERS LTD.
VANCOUVER, British Columbia, May 11 /PRNewswire/ -- Dan Maarsman, president of Fairlane Transportation Inc. (Vancouver: FRT), announces that the company has entered into a letter of intent to purchase all of the issued shares of A & B Train Carriers Ltd. of Abbotsford, British Columbia. This acquisition will be made with a combination of shares and cash. Closing is set for on or before Aug. 2, 1993. A & B Train Carriers Ltd. brings with it the following: 1) A fleet of specialty equipment in the way of walking floor trailers, flat decks, converter dollies and other related equipment for specialty and long-haul contract operations. 2) Contracts exist for the following: A) Specialty agricultural B) Other bulk commodities C) Long-haul contracts between British Columbia and Ontario. (All of the above contracts have been in existence for a number of years and provide a solid revenue base). 3) Existing operating authorities are: A) Agricultural and bulk products within the province of
British Columbia, general freight contracts within the province of British Columbia.
B) Alberta intra- and extra-general merchandise. C) Corridor operating authority; Saskatchewan and Manitoba. D) Ontario intra- and extra-specialty merchandise. 4) The management of the existing company will enter into a minimum of two year management contract. The annual sales of A & B Train Carriers are presently $1,000,000; anticipated to increase to $2,000,000 in 12 months and $3,000,000 in 24 months under the new corporate ownership. This acquisition will greatly enhance the company's ability to work with A & B Train Carriers' products at source and then feed these products on through after processing, etc., into Fairlane's existing light and heavy LTL trucking system, warehouse distribution and container network. Acquisition will be subject to the approval of the Vancouver Stock Exchange and other regulatory authorities. Until closing the present managers of A & B Train Carriers will continue to operate the company with the integrated assistance of Fairlane Transportation. After closing, present management will stay in place under management contracts. A & B Train Carriers will become another profit center of Fairlane Transportation. This release is in reference to Fairlane's previous release dated March 24, 1993. Fairlane Transportation Inc. has filed with the "Office of International Corporate Finance Securities and Exchange Commission, Washington, D.C., U.S.A." The application was processed on March 29, 1993. Fairlane has received its 12G3-2B File No. 82-3279. Enquiries are invited to call collect at Fairlane's Investor & Corporate Relations department at 604-526-1969. -0- 5/11/93 /CONTACT: C.N. (Clint) Schwandt, VP-Investor & Corporate Relations of Fairlane Transportation, (phone) 604-526-1969, or (fax) 604-524-2151/ (FRT.)
CO: Fairlane Transportation Inc.; A & B Train Carriers Ltd. ST: British Columbia IN: TRN SU: TNM
JB -- LA024 -- 7111 05/11/93 13:44 EDT
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|Date:||May 11, 1993|
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