TORONTO, ONTARIO--(Marketwire - Sept. 24, 2007) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US WIRE SERVICES.
Lakeside Steel Corporation ("Lakeside" or the "Company") is pleased to announce the appointment of Tim Clutterbuck as President and Chief Executive Officer of the Company effective October 1, 2007.
Mr. Clutterbuck is a steel executive with twenty-seven years of industry experience. From 2001 until 2007, Mr. Clutterbuck was a senior executive with Ryerson Canada, a division of Ryerson Inc., which is a leading distributor of carbon steel and specialty products in North America. From 1980 until 2000, Mr. Clutterbuck served in various roles, including Vice President and General Manager at Atlas Specialty Steels. Mr. Clutterbuck is a professional engineer and holds a Bachelor of Engineering degree from McMaster University.
Mr. Clutterbuck is a resident of Welland, where Lakeside's steel pipe and tubular manufacturing plant is located.
Vic Alboini, Chairman of Lakeside, stated: "Tim Clutterbuck joins Lakeside with an excellent track record as a strong and motivated leader with very good communication and analytical skills. We are very confident that Tim will be a substantial contributor to Lakeside moving to the next level."
Mr. Sam Di Michele, who was hired as President and Chief Restructuring Officer, will remain with the Company as a restructuring advisor until completion of his one-year contract on March 4, 2008, together with his business partner Olga Budimirovic, who will also become a restructuring advisor.
As previously announced on August 29, 2007, Added Capital Corp. ("Added") (TSX VENTURE:ACI.P) has agreed to acquire all the issued shares of Lakeside (the "Transaction"). The Transaction is expected to be completed in October 2007 and would represent Added's qualifying transaction.
As was also previously announced, Lakeside proposes to raise between $10 million and $50 million (the "Financing") in connection with the Transaction. Northern Securities Inc. is acting as lead agent for Lakeside in the Financing, on behalf of a syndicate of securities firms in New York, London and Canada. The Financing is subject to a $10 million over-allotment option that will expire on the closing of the Financing.
Assuming completion of the maximum offering of $50 million and that the over-allotment option is not exercised, the net proceeds of the Financing will be used as follows: (i) to repay $6.5 million in Lakeside's subordinated debt, including accrued interest, (ii) to spend up to $3.5 million on capital expenditures and (iii) up to $35 million will be used to fund potential acquisitions of private or public companies in business segments connected to the steel and building products sectors. It is anticipated that the remaining $6.5 million in subordinated debt will be repaid from Lakeside's line of credit with its working capital lender.
Added's shares were listed on the TSX Venture Exchange and immediately halted pending Added's announcement of the previously announced Qualifying Transaction. Trading in shares will resume subject to the receipt of appropriate filing documentation and upon the engagement of a sponsor or sponsorship exemption.
Completion of the Transaction is subject to a number of conditions including, but not limited to, TSX Venture Exchange acceptance and, if applicable, pursuant to TSX Venture Exchange requirements, majority of the minority shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the Filing Statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in securities of a capital pool company should be considered highly speculative.
Forward Looking Information
This press release contains certain forward looking information within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to current expectations and projections about future results. In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or information that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by the forward-looking information to be materially different from those expressed or implied by such forward-looking information, including risks associated with: merger and acquisition transactions, receipt of regulatory and other required approvals, best efforts financings, volatility of metal prices and cyclical nature of business, oil and gas sector volatility, increased imports, production cost increases, general economic slowdown and limited history of operations and changes in project parameters as plans continue to be refined. Although Added and the Company have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Neither Added or the Company undertake to update any forward-looking information except in accordance with applicable securities laws.The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Transaction and has neither approved nor disproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.