Ask and ye shall receive! Here's KS's press release:
(Full text of press release from Canadian Corporate News)
JANUARY 8, 1999
Kafus Purchases Canfibre Cashflow from Samarac
VANCOUVER, BRITISH COLUMBIA--Kafus Environmental Industries
Ltd. (American Stock Exchange symbol: KS) is pleased to report
that following prolonged negotiations, it concluded an
agreement on December 31, 1998 to purchase from Samarac Corp.
(Samarac) Samarac's Management and Development Agreements
(Contracts) with the CanFibre Group Ltd. Included in the Kafus
acquisition is Samarac's rights to a ten percent CanFibre net
cash flow for up to 20 years.
In consideration for the acquisition of the Contracts at an
aggregate purchase price of US$ 22,500,000, Kafus has agreed to
issue to Samarac 2,500 Series VIII 10 percent Convertible
Redeemable Preference shares. The 2,500 Series VIII 10 percent
Convertible Redeemable Preference shares may be converted at
the option of Samarac at any time upon their issuance at the
conversion price of US$8 per Common share into an aggregate of
2,812,500 Common shares in the capital of Kafus subject to
adjustments in accordance with the rights and restriction
attached to the Series VIII 10 percent Convertible Redeemable
Preference shares. Samarac's acquisition was made pursuant to a
private agreement between Samarac and Kafus. Kafus'
acquisition of the Samarac Contracts was reviewed in depth
prior to closing by a Special Committee of independant Kafus
directors, and is subject to further review and adjustments if
required by way of an independent valuation within ninety
days.
Kafus believes that this transaction represents significant
future value to its shareholders. The transaction also
reconfirms Samarac's faith and commitment to the long term
capital growth of Kafus.
Kafus is rapidly moving towards its corporate objective of
becoming a global low-cost producer of commodity type products
from alternative materials including consumer and agricultural
waste.
The foregoing contains forward-looking statements which are
subject to contingencies and uncertainties. Such
forward-looking statements are not guarantees of future
performance, and are based on numerous assumptions about future
conditions that could prove to be inaccurate. Actual events,
transactions and results may differ materially from anticipated
events, transactions or results described in such statements.
Material uncertainties about the future of the company exist.
There can be no assurance that funding will be obtained for the
proposed facilities, or that they will be constructed or
operated as contemplated, or that the market for the products
of any facilities will be as assumed. Kafus is subject to a
number of risks and uncertainties which are set forth in its
filing with the Securities and Exchange Commission.
FOR FURTHER INFORMATION PLEASE CONTACT:
Kafus Environmental Industries Ltd.
Todd Hilditch
Manager of Investor Relations
(888) 333-5377 (Toll Free) or (604) 602-1981
Website: www.kafus.com
or
Tony Francel, PBS
(941) 698-8920
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