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Microcap & Penny Stocks : FYNI - Forestry International, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: marketmaven who wrote (84)	8/5/1999 2:23:00 PM
From: Currency	Read Replies (1) \| Respond to of 87

*** NEWS *** Forestry International Reaches a Final Agreement for the Acquisition of a Fully Integrated Timber Company MONTREAL, Aug. 5 /PRNewswire/ -- Forestry International, Inc., (OTC Bulletin Board: FYNI) is please to announce today that it has reached a final agreement to purchase all common shares of a fully integrated wood products operation with sales in excess of US $25 million located in the southeast of the United States. Under the terms of the agreement, Forestry International is acquiring the company for US $22 million, payable in cash and stock, including the assumption of all liabilities at the time of closing. The transaction is subject to the completion of the financing which Forestry International expects to take place at any time before the end of the third quarter. The company being acquired is totally integrated with four (4) profitable operations which include: chipmills, sawmill, logging and procurement operation and has currently approximately 120 employees. Additional information about the acquisition will be available at the time of closing. Louis R. Turp, President of Forestry International, declared that, "This well-established corporation will allow the Company to start with its strategic acquisition program and capitalize with these niche markets. According to current market dynamics, the overall picture of the industry appears brighter by looking at capacity, consumption, pricing and inventory. Forestry will acquire significant leverage along the way and we are forecasting debt to total capital ratio to decrease substantially over the years by using the leverage of a publicly traded company. The solid, seasoned management team of the company being acquired will contribute to enhance Forestry International's operations and maximize shareholder value." Also, Forestry International entered into an agreement with the Trustee for Dylan-Hutton under which Forestry International will obtain a declaration from the Bankruptcy Court invalidating the original promissory note executed by the former President of Forestry International in favor of Dylan-Hutton and a second promissory note executed to the same entity in the amount of $146,606. The agreement also provides for the return to Forestry International of 159,803 common shares of Forestry International, Inc. The agreement is subject to the approval of the Bankruptcy Court, which the parties anticipate will be provided within the next thirty (30) days. The case is continuing for one outstanding promissory note payable to SSI Development, Inc. (which note was recently substituted to the former President of Forestry International at his request) for the amount of $125,000. Management anticipates similar results where the Court will ultimately declare this note invalid at the December 1999 trial. Forestry International would like also to announce that it has retained for a one (1) year period the services of Renmark Financial Communications, which will offer a full range of services related to the financial communications of Forestry International. Mr. Henri Perron, President of Renmark Financial Communications, was previously Vice President, Investor Relations with Uniforet, Inc. a Canadian forest product company involved in the pulp & paper and lumber industry with annual sales in excess of CDN$ 300M (US$ 200M). Mr. Perron commented, "We are pleased to be associated with Forestry International at this present time of the cycle, considering the very favorable industry outlook for the coming years." On June 20, 1999, Mr. Richard Jamieson accepted the invitation to serve as the new Chief Financial Officer of the Company. Mr. Jamieson brings an impressive array of financial, administrative and marketing skills with a strong background in the commercial insurance and credit industry. Mr. Perry Gower has recently resigned as an Officer and Director of Forestry International, Inc. Forestry International, Inc. Louis R. Turp, President (514) 495-7747 FOR FURTHER INFORMATION CONCERNING THE COMPANY PLEASE CONTACT: Renmark Financial Communications Henri Perron, President (514) 939-3989 hperron@renmarkfinancial.com SOURCE Forestry International, Inc. -0- 08/05/99 /CONTACT: Henri Perron, President of Renmark Financial Communications, 514-939-3989, or hperron@renmarkfinancial.com, for Forestry International, Inc./ (FYNI)