Royal Laser Corp.

Royal Laser Corp.

March 09, 2010 14:20 ET

Royal Laser Provides Update on Strategic Review Process

TORONTO, ONTARIO--(Marketwire - March 9, 2010) - Royal Laser Corp. (the "Company" or "Royal Laser") (TSX:RLC) today provided an update on the Company's ongoing strategic review process being undertaken by the Special Committee of the Board of Directors of Royal Laser (the "Special Committee") to review and evaluate potential transactions to maximize value for Royal Laser shareholders, as previously announced in the press releases issued on November 17, 2009 and December 14, 2009, respectively. The Company is providing an update on its strategic review process.

The Company has received a revised non-binding offer (the "March 2010 Proposal") to acquire all of the outstanding Common Shares from the same party that made a similar non-binding offer on November 17, 2009 (the "November 2009 Proposal"). Like the November 2009 Proposal, the March 2010 Proposal is subject to several conditions, including the completion of due diligence and the sale of Royal Laser's non-core assets consisting of Royal Laser Manufacturing, WAM Industries, Smokey Manufacturing, Thunder Tool and Envyrozone (collectively, the "Non-Core Assets"). The March 2010 Proposal, which excludes the Non-Core Assets, values the equity of the Company at $40,000,000, or approximately $0.41 per Common Share.

In addition, the Special Committee has been in preliminary discussions with other potential purchasers of the Company. In particular, the Special Committee, and its advisors, have been in discussions with an interested party that has provided the Special Committee with a non-binding indication of interest involving the acquisition of the Common Shares (excluding the Non-Core Assets) or the acquisition of Royal Laser's steel processing business. As with the March 2010 Proposal, these discussions remain subject to several conditions and none of these discussions, or discussions with other potential purchasers of the Company, have resulted in the entering into of any definitive agreement.

Any transaction would be subject to approval by the Company's Board of Directors and the negotiation of definitive agreements. There can be no assurance that the discussions with any potential purchaser will result in a completed transaction.

About Royal Laser Corp.

Royal Laser Corp., through its operations, services, processes and distributes flat-rolled steel targeted at the multi-billion dollar automotive OEM, automotive after-market, and custom fabricates products for the industrial, environmental, automotive and construction industries in Canada, the United States and Mexico. The Company's common shares trade on the Toronto Stock Exchange under the symbol "RLC" and there are approximately 97 million shares outstanding.

For further information on the Corporation, please visit SEDAR at

To receive Company news by email, please contact and specify "Royal Laser news" in the subject line.

Forward-Looking Statements

Certain statements contained in this press release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and other factors, many of which are beyond our control, and are as discussed under the heading "Trends, Risks and Uncertainties" and in the Annual Information Form of Royal Laser dated June 29, 2009 and filed on SEDAR at, as well as Royal Laser's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits will be derived therefrom. Except as required by law, Royal Laser Corp. disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained herein is expressly qualified by this cautionary statement.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Royal Laser Corp.
    Irving Teper
    Chairman, Special Committee
    (905) 738 7979