Sep 24 2007
Royal Laser Corp. announces that they have signed a letter of intent to acquire 100% of the equity in Apogee Slitting Inc., a Mississauga, Ontario based steel service centre, for a minimum purchase consideration of 6,000,000 common shares in the Corporation, at a deemed price of $0.45, and cash consideration of $6,000,000. Additional purchase consideration of $5,000,000 is payable in the event that Apogee meets certain additional revenue and profit thresholds - payable in cash or common shares of the Corporation, at the vendor's option. Apogee will be merged into the Venture Steel Inc. subsidiary of Royal Laser.
Beric Sykes, President of Venture Steel, comments: "Apogee provides expanded market coverage for Venture Steel into the tubular, heavy gauge automotive, building products and general manufacturing markets. In addition, Apogee compliments our current operations by adding increased slitting capabilities (heavier gauges up to 0.5 inches) and increased storage capacity.
The share acquisition is conditional on Royal Laser's satisfaction with its due diligence investigation of Apogee, negotiation of a definitive agreement between Royal Laser and the shareholders of Apogee, and receipt of all necessary regulatory and government approvals.