Castello Casino Corp. -- Agreement to Acquire Bioforest Investments Inc.
TORONTO, May 9, 2000 (BUSINESS WIRE) -- Castello Casino Corp. ("Castello")
(OTCBB:CCCZ) is pleased to announce that the Company has entered into a Share
Exchange Agreement with Bioforest Investments Inc. (Bioforest).
Under the terms of the agreement, Castello will purchase 100% of the Bioforest
outstanding shares for U.S.$123,850,710 with the issuance of 41,283,570 post
consolidated shares of Castello. A special meeting of shareholders has been
called for July 5, 2000 to ratify this agreement to change the name of Castello
and to approve a share consolidation on the basis of one (1) new share for each
14 old shares held.
Bioforest Investments Inc. has the right to earn 70% of Bioforest Holdings
(Fiji) Limited and Bioforest Products (Fiji) Limited ("H&P") upon providing
U.S.$11,000,000 to fund the project. H&P are 30% owned by the Taukei Unit Trust,
which represents the interests of certain indigenous resources owners of forest
plantation lands. The funding will be used to acquire several indigenous timber
concessions in the Republic of Fiji containing approximately 3,000,000 cubic
metres of production timber and to purchase and upgrade an operating sawmill and
dry mill.
In a separate agreement, Castello has engaged Thomson Kernaghan & Co. Ltd. Of
Toronto, an investment firm, to privately place a U.S.$560,000 Convertible
Debenture. The proceeds from this financing will be used to acquire options on
certain mahogany concessions in Fiji and for working capital.
CASTELLO CASINO CORP. 150 York Street, Suite 302, Toronto, Ontario M5H 3S5
ph.(416)594-0528 fax(416)360-4034
Statements in this news release that are not historical facts, including
statements about plans and expectations regarding products and opportunities,
demand and acceptance of new or existing products, capital resources and future
financial results are forward-looking. Forward-looking statements involve risks
and uncertainties which may cause the company's actual results in future periods
to differ materially from those expressed. These uncertainties and risk include
changing consumer preferences, lack of success of new products, loss of the
company's customers, competition and other factors discussed from time to time
in the company's filings with the Securities & Exchange Commission.
No securities regulatory authority has approved or disapproved of the content s
of this news release.
SHARES ISSUED: 13,950,645 SEC FILE NO: 0-30194
Distributed via COMTEX.
Copyright (C) 2000 Business Wire. All rights reserved.
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CONTACT: Castello Casino Corp.
Ross McGroarty, Chairman
or
David Hynes, President
416/594-0528
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