Added Capital Corp.

December 05, 2007 15:43 ET

Added Capital Corp. Completes Qualifying Transaction With Lakeside Steel Corporation

TORONTO, ONTARIO--(Marketwire - Dec. 5, 2007) - Added Capital Corp. ("Added") (TSX VENTURE:ACI.P) is pleased to announce the completion of its qualifying transaction with Lakeside Steel Corporation ("Lakeside") on November 30, 2007 whereby Added acquired all of the 38,000,000 issued and outstanding common shares of Lakeside on a one for one basis. (the "Qualifying Transaction").

The Qualifying Transaction, which was previously announced by Added in a press release dated August 29, 2007, was completed by way of a "three cornered" amalgamation among Added, Lakeside and a wholly-owned subsidiary of Added.

In connection with the Qualifying Transaction, Lakeside completed a private placement of 23,809,524 units ("Units") at a price of $0.42 per Unit for gross proceeds of $10,000,000. Each Unit is comprised of one common share in the capital of Lakeside and one-half of one common share purchase warrant. The Units were sold on a private placement basis by a syndicate of agents led by Northern Securities Inc. ("Northern"). Following the completion of the private placement and the Qualifying Transaction there are 63,809,524 issued and outstanding common shares in Added. Of the 63,809,524 issued and outstanding common shares in Added, 16,712,679 will be subject to escrow. Twenty five percent ("25%") of the escrowed common shares will be released on the date the TSX Venture Exchange (the "Exchange") provides a final exchange bulletin ("Final Exchange Bulletin"), and another 25% will be released after each subsequent 6 month period until all of the escrowed common shares are released 18 months from the date of the Final Exchange Bulletin.

It is anticipated that Added's shares and warrants will be listed for trading on the Exchange on Friday, December 7, 2007 under the stock symbol LS for the shares and LS.WT for the warrants, subject to Added satisfying all of the Exchange's outstanding conditions.

Lakeside used $6,711,268 of the funds raised pursuant to the private placement to repay 50% of the $13,422,535 in long term debt that accrued interest at 22% until March 31, 2007 and at 11% since that date. Lakeside retired the remaining $6,711,267 of the long-term debt from its credit facility. As a result, Lakeside no longer has any long-term debt. The remaining net proceeds will be used for capital expenditures and working capital purposes.

Lakeside has renewed its credit facility with CIT Business Credit Canada Inc., which allows for up to a maximum of $35,000,000 in available funding subject to certain conditions and provides for an increase in annual capital expenditures to $4,200,000 in each of the fiscal years ending March 31, 2008 and March 31, 2009.

Vic Alboini, Chairman and CEO of Added stated: "The completion of Lakeside's going public transaction has enabled Lakeside to raise sufficient equity to retire its legacy acquisition financing that carried a burdensome interest rate. Additionally, Lakeside is now poised to consider appropriate merger and acquisition opportunities."

The officers and directors of Lakeside and Added are as follows:

Vic Alboini, Chairman and Chief Executive Officer of Added, Chairman and Co-
Chief Executive Officer of Lakeside
Tim Clutterbuck, President and Chief Executive Officer of Lakeside
Ken Hunter, Chief Financial Officer of Added and Lakeside
Robert O'Brien, Vice President Human Resources of Lakeside
Frank Marotta, Vice President and Controller of Lakeside
William Grant, Director of Added
Tom Milne, Director of Added
Wesley Roitman, Director of Added

For more information regarding the private placement, the Qualifying Transaction, or on Lakeside please refer to the Filing Statement posted by Added on November 20, 2007 on SEDAR (

About Lakeside Steel Corporation

Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing manufacturer. Lakeside's list of customers includes large oil and gas, mining, automotive and commercial and industrial supply companies. In addition to supplying its products in these industries, Lakeside manufactures pipe and mechanical tubing for the resale market, which is sold to distributors in Eastern Canada and the Northeastern United States. Lakeside manufactures a variety of products for these industries including oil well tubing and casing, mechanical tubing, pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and plumbing pipe, drill rod and specialty tubing. Lakeside serves customers worldwide, either directly or indirectly, in Canada, China, Australia and the United States.

Contact Information

  • Added Capital Corp.
    Vic Alboini
    Chairman and Chief Executive Officer
    (416) 644-8110
    (416) 644-0271 (FAX)