This initiative is part of our company-wide objective of improving our level of service to our customers and providing continuous enhancements to our ordering and distribution processes."
The sale consists of primarily receivables and work-in-progress, less the liabilities associated with those assets. The sale proceeds of approximately $3.6 million will be paid in cash of $2.6 million and a $1.0 million promissory note, which will be secured with a second charge on the assets of the entity purchasing the assets. The promissory note will bear interest at 5% and will require monthly payments for five years. There will be a contingency holdback of approximately $100,000, which will be paid to Guildfords, 120 days after the closing of the transaction. The cash proceeds will be used to reduce Multi-Glass' operating loan from its principal lender.
The closing of the Transaction is anticipated to occur on September 30, 2005 and is conditional upon approval from the TSX-Venture Exchange, and the completion of a due diligence process. (No agent or finder's fees will be paid as part of this transaction.)