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Gold/Mining/Energy : SMM on TSE - Simmonds Capital -- Ignore unavailable to you. Want to Upgrade?

To: Buckey who wrote (343)	1/12/2000 7:47:00 PM
From: Flea	Read Replies (1) \| Respond to of 372

Simmonds to sell A.C. Simmonds & Sons division Simmonds Capital Ltd SMM Shares issued 23,462,341 2000-01-11 close $0.52 Wednesday Jan 12 2000 Mr. David O'Kell reports Simmonds Capital has signed a letter of intent to sell the A.C. Simmonds & Sons division to 1370388 Ontario Inc. (ACS acquisition). ACS Acquisition is a company formed by some of the senior managers of SCL Electronics Ltd., other employees of the A.C. Simmonds division and other investors for the purpose of acquiring the A.C. Simmonds & Sons division. Under the terms of the letter of intent, ACS Acquisition will acquire all of the operating assets of the division including inventory, fixed assets, prepaid expenses, and supplier agreements. ACS Acquisition will assume certain liabilities related to the business including the accounts payable, equipment leases and responsibility for all of the current employees of the division. Simmonds Capital expects to receive net proceeds of approximately $2.5-million after the sale of the division and collection of the outstanding accounts receivable. In addition, Simmonds Capital shall have a 20-per-cent equity interest in ACS Acquisition based upon the issued capital at closing of the acquisition. The completion of the transaction is subject to final documentation including certain approvals and releases, completion of financing by ACS Acquisition, and approval from the shareholders of Simmonds Capital. Simmonds Capital has called a special meeting of its shareholders to approve the sale of both the A.C. Simmonds & Sons division to ACS Acquisition and the sale of the SCL Technologies division to Primetech Electronics. The A.C. Simmonds & Sons division is a Canadian manufacturer's representative, which markets and distributes electronics products with a focus on audio and video products for the professional and consumer markets. (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com