Empire Disposes of Certain Non-Core Assets

WINNIPEG, Manitoba, Dec. 09, 2019 (GLOBE NEWSWIRE) — Empire Industries Ltd. (TSX-V: EIL, OTC:ERILF) (“Empire”, “EIL”, “us”, “our”, “we” or the “Company”) is pleased to announce that, subject to the approval of the TSX Venture Exchange (“TSX-V”), the Company has entered into agreements with 4 arm’s-length purchasers to sell an aggregate of 17,588,126 common shares (together the “Tornado Shares” and each a “Tornado Share”) in the capital of Tornado Global Hydrovacs Ltd. (TSXV:TGH) (“Tornado”) at a price of $0.17 per Share for aggregate gross proceeds of CDN$2.99 million (the “Transaction”). The Company intends to close the Transaction as soon as possible and use the net proceeds of the Transaction for general working capital purposes.
The Company, subject to TSX-V approval, intends to pay a finder’s fee to an arm’s length finder equal to $0.01 per Tornado Share on a portion of the Tornado Shares sold pursuant to the Transaction (the “Finder’s Fee”). The Finder’s Fee is to be part in cash and part in-kind by transfer of 58,823 Tornado Shares at a value of $0.17 per Tornado Share.“I am pleased to announce that Empire has increased its working capital by $2.99 million and achieved a gain on sale of $1.67 million and still own 12.5 million shares of Tornado Global Hydrovacs Ltd.,” said Guy Nelson, CEO of Empire. “Tornado is a great company so the decision was a difficult one to make, particularly at this stage of Tornado’s growth, evolution and share price, but the extra working capital for Empire drove the decision.”About Empire Industries Ltd.
Empire focuses on designing, supplying, and installing iconic media-based attractions and ride systems for the global theme park industry. Empire also uses these same turn-key integration services for special projects such as large optical telescopes and enclosures. Empire also has commenced an initiative to leverage its world class flying theater and attraction development capability on a co-venture ownership basis. Empire’s common shares are listed on the TSX Venture Exchange under the symbol EIL. Empire’s common shares are listed on the TSX Venture Exchange under the symbol EIL.For more information about the Company, visit empind.com or contact:Reader Advisory
This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire’s business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, “booked”, ‘‘scheduled’’, “positions”, ‘‘estimates’’, “forecasts’’, ‘‘intends’’, ‘‘anticipates’’, “believes” or variations of such words and phrases or state that certain actions, events or results ‘‘may’’, “may be”, ‘‘could’’, “should”, ‘‘would’’, ‘‘might’’ or ‘‘will’’, ‘‘occur’’ or ‘‘be achieved’’. Such statements include statements with respect to: (i) receipt of the approval of the TSX-V; (ii) the use of the net proceeds; and (iii) the Company’s intention to dispose its entire ownership interest in Tornado. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Empire believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Empire. The forward-looking statements contained in this news release represent Empire’s expectations as of the date hereof, and are subject to change after such date. Empire disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.