Newlook Industries Corp.
TSX VENTURE : NLI

Newlook Industries Corp.

October 05, 2009 09:51 ET

Newlook Subsidiary Enters Into Settlement

TORONTO, ONTARIO--(Marketwire – Oct. 5, 2009) - Newlook Industries Corp. ("Newlook" or the "Company") (TSX VENTURE:NLI), announces that its majority-owned subsidiary, Wireless Age Communications, Inc. ("Wireless Age") (PINK SHEETS:WLSA) has entered into an agreement (the "Settlement Agreement") with the receiver and trustee in bankruptcy (the "Trustee") of its former subsidiaries, Wireless Age Communications Ltd. ("Wireless Communications") and Wireless Source Distribution Ltd. ("Wireless Source"). Pursuant to the Settlement Agreement, Wireless Age agreed to pay Wireless Communications and Wireless Source a total of $750,000 (the "Settlement Amount") to settle outstanding loans totaling approximately $8.3 million provided by Wireless Communications and Wireless Source to Wireless Age.

Pursuant to the terms of the Settlement Agreement, the Trustee has agreed to seek court approval for the arrangement on or before October 9, 2009. Wireless Age has agreed to pay an initial installment of $50,000 within two days following the expiry of the 30-day appeal period after approval of the court order. The remaining $700,000 will be payable on or before December 31, 2009. If Wireless Age defaults on payment of the Settlement Amount, it has agreed not to contest actions taken by the Trustee to recover a reduced amount of $3.25 million, less any payments made on the Settlement Amount, rather than the full $8.3 million amount of the loans.

Gary N. Hokkanen, Newlook CFO stated; "The agreement is necessary to improve Wireless Age's balance sheet. If completed prior to year-end, it will settle the approximately $8.3 million accrued special charge loss provision booked in December 2008, representing a substantial gain. In addition, it will allow Wireless Age to take its first steps to bring its SEC reporting back up to date and migrate to a more senior listing."

Wireless Age agreed to provide a release to the Trustee and others effective upon the expiry of the appeal period, and the Trustee agreed to provide a release to Wireless Age, effective upon payment of the Settlement Amount. All parties to the Settlement Agreement agreed that the exchange of releases and payment of monies do not constitute an admission of liability, but are simply a compromise of disputed claims.

John G. Simmonds, Newlook CEO commented; "I'm extremely pleased with this agreement, as it allows us to arrange a restructuring with Wireless Age and move towards a renewable energy transaction, subject to regulatory approvals."

Newlook Industries Corp., headquartered in Toronto, Ontario is a publicly traded company listed on the TSX Venture Exchange.

For more information please call (416) 477-5656 or refer to www.sedar.com.

The management of the company, who take full responsibility for its content, prepared this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements relating to future events and results that are based on Newlook's current expectations. These statements involve risks and uncertainties including, without limitation, Newlook's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.

Contact Information

  • Newlook Industries Corp.
    John G. Simmonds
    Chief Executive Officer
    (416) 477-5656 x301