Pallet Pallet Inc. - Issuance of shares
FT. SMITH, AR, Dec. 4 /CNW/ - In October 1997, Equity Merchant Banking
Corporation (''EMBC'') acquired 40,867,377 common shares of Pallet Pallet Inc.
(''PPI''). Subsequently, EMBC transferred 15,305,280 common shares of PPI to
F. Ross Walpole, a principal of EMBC. At the time of such purchases, the
common shares of PPI were listed on The Toronto Stock Exchange. Both EMBC and
F. Ross Walpole purchased these shares for investment purposes.
In June 1998, EMBC arranged a credit facility of US$7,500,000 for PPI
through Connecticut Bank of Commerce (the ''Transaction''). Pursuant to the
Transaction, EMBC and F. Ross Walpole are entitled to a fee (the ''Fee'')
equal to 2.6% of the amount of the credit facility totalling US$195,000. PPI
issued an aggregate of 3,200,000 common shares (the ''Fee Shares'') at
Cdn$0.06 per share satisfaction of the Fee; 2,200,000 Fee Shares of PPI were
issued to EMBC and 1,000,000 Fee Shares were issued to F. Ross Walpole.
EMBC and F. Ross Walpole owned 23.38% and 14.0%, respectively, of the
issued and outstanding shares of PPI prior to the issuance of the Fee Shares.
After the issuance of the Fee Shares, EMBC and F. Ross Walpole will own 24.67%
and 14.49%, respectively, of the issued and outstanding shares of PPI.
On July 29, 1998, PPI voluntarily de-listed its common shares on The
Toronto Stock Exchange. The common shares of PPI are currently quoted on The
Canadian Dealing Network under the symbol PPAL. PPI is presently investigating
alternatives for its continuing need for capital.
PPI manufactures, recycles and distributes new and recycled pallets and
related products such as packaging materials and containers.
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For further information: please contact: Mr. Timothy J. Fussner, Pallet
Pallet Inc., Telephone: (416) 531-6111
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