Winalta Inc.

Winalta Inc.

January 30, 2007 19:12 ET

Winalta Announces a $25 Million Private Placement of Common Shares

EDMONTON, ALBERTA--(CCNMatthews - Jan. 30, 2007) - Winalta Inc. (TSX VENTURE:WTA.A) ("Winalta" or the "Company") is pleased to announce that it has entered into an agreement with Acumen Capital Finance Partners Limited ("Acumen" or the "Agent") to complete a private placement, on a "best efforts" agency basis, of 5,500,000 common shares of the Company (the "Common Shares") at a price of $2.00 per Common Share for aggregate gross proceeds of $11,000,000 (the "Brokered Private Placement"). In addition, $14,000,000 in Common Shares will be issued in a non-brokered concurrent private placement (the "Non-brokered Private Placement") under the same price and terms as the Brokered Private Placement. $10,000,000 of the Non-Brokered private placement will be purchased by KOS Investments Ltd., the majority shareholder of Winalta Inc. The closing of the Brokered Private Placement and the Non-Brokered Private Placement (collectively, the "Private Placements") is expected to occur on or about February 20, 2007. The Company shall have the option to issue an additional 2,500,000 Common Shares prior to closing.

Net proceeds will be used for debt reduction, working capital, acquisitions and land development.

Winalta Inc. and through its subsidiaries, is a land developer in Western Canada as well as a producer of manufactured and modular CSA certified homes and site-built homes. In addition through its wholly-owned subsidiary, Vanguard Inc. manufactures industrial trailers and camps at North Battleford. Saskatchewan.

Winalta Inc. shares trade on the TSX Venture Exchange under the symbol "WTA.A".

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

Contact Information

  • Winalta Inc.
    Artie Kos
    President and CEO
    (780) 960-6900