April 25, 2008 17:25 ET

Forterra Announces Debenture Financing and Share Consolidation

TORONTO, ONTARIO--(Marketwire - April 25, 2008) - Forterra Environmental Corp. (Forterra) (TSX VENTURE:FTE) announced that it has raised $260,000 through the issuance of secured debentures, together with 1,040,000 of bonus common shares, by way of a non-brokered private placement. The proceeds will be used for working capital purposes.

The debentures will become due and payable on September 30, 2008, with interest calculated monthly at 16% per annum and payable on the debenture due date. Four bonus shares were issued to the debenture holders for every $1.00 of debenture principal. The bonus shares have a deemed price of $0.05 per share.

Subscribers for all but $10,000 of the debentures are members of Forterra's board of directors.

Forterra also announce that it will seek shareholder approval of a consolidation of its approximately 61.5 million outstanding common shares. The proposed consolidation ratio, expected to be one new share for five old shares, will be set in advance of mailing the management proxy circular for the shareholder meeting. The shareholder meeting is scheduled for June 4, 2008.

Forterra intends to seek up to $1,000,000 of additional capital in order to repay the debentures on maturity and to provide working capital necessary to continue operations until the spring of 2009. Forterra intends to raise these funds through a combination of a private placement and a rights offering, following completion of the share consolidation.

Mr. Green also announced that John Gamble has accepted an offer to join the Forterra board of directors. Mr. Gamble is the President of York Simcoe Investments Inc., a Toronto based investment & consulting company.

About Forterra Environmental Corp.

Forterra Environmental Corp. is an emerging leader in the production and marketing of premium organic soil enrichment products. These environmentally friendly products boost fertility while replenishing the soil with organic matter, using worm castings, for sustainable, long-term benefits, including stronger root growth and drought and pest resistance. Forterra is the first company to commercialize the indoor, large-scale production of totally organic soil-enrichment products. Forterra uses red wriggler worms to convert organic waste into vermicompost or worm castings. Worm castings contain micronutrients, which are required for healthy plant development. Worm castings also contain microbes, which increase the rate at which plants take up available macronutrients and micronutrients.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Forterra Environmental Corp.
    Donald Green
    Chairman and Chief Executive Officer
    (905) 634-8647