TORONTO, ONTARIO, Nov. 6, 2009 (Marketwire) --
TORONTO, ONTARIO -- (Marketwire) -- 11/06/09 -- Semcan Inc. (TSX VENTURE: STT) ("Semcan") announced today that its United Kingdom subsidiary, Naston Limited, has engaged Pococks Chartered Accountants to assist with the restructuring and possible sale or winding-up of Naston. In early December 2009, Naston will be presenting a plan to its creditors under which the company could enter into a Company Voluntary Arrangement under UK law. Certain of its projects would be completed over the next two years, the net proceeds of which would be for the benefit of Naston's creditors.
At the end of 2008, Semcan made the decision to divest itself of Naston, and wrote down the investment during the period ended 30th June, 2009. The company anticipates a final non cash write down of $375,000 for the quarter ended 30th September 2009.
Semcan also announces the successful integration of the ZMI Portec operations into its Milton facility - the financial effect of which result in approximately $600,000 of annual cost savings. The full effect of these savings will be felt in fiscal year 2010.
In addition, the corporate office located at 365 Adelaide Street East, Toronto has now closed and the functions transferred to Stanco Projects Ltd at 8485 Parkhill Drive, Milton, Ontario, resulting in further annual cost savings in excess of $100,000.
Semcan Inc confirms that it has retired all term debt due to Toronto Dominion Commercial Bank ("TD") and that the company's sole indebtedness to TD is its revolving operating line with a limit of $1.5 million. Because of the low borrowings the company no longer meets the criteria set by the National Accounts Division of TD and have therefore transferred the management of the account to the bank's Financial Restructuring Group, an intermediate step before a possible transfer of the account to a regional centre of TD.
About Semcan Inc
Semcan is a worldwide supplier of industrial processes and environmental solutions with specific emphasis on water remediation and emission control systems
Forward-Looking Statement Disclaimer
Caution Regarding Forward-Looking Information and Non-GAAP Measures
This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and expectations and are based on information currently available to management of Semcan. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties.
