Wireless Age Communications, Inc.

Wireless Age Communications, Inc.

April 05, 2010 15:41 ET

Wireless Age Announces Settlement With Newlook

TORONTO, ONTARIO--(Marketwire - April 5, 2010) - Wireless Age Communications, Inc. ("Wireless Age" or the "Company") (PINK SHEETS:WLSA) announced that as part of an overall restructuring, the Company intends to adopt the name of its largest shareholder, Newlook Industries Corp. ("Newlook") (TSX VENTURE:NLI), as part of a debt settlement agreement (the "Settlement Agreement") between the two parties. Accordingly, Newlook also intends to change its name.

As first announced on November 18, 2009, Wireless Age and Newlook had agreed on terms of debt settlement totaling approximately $6,300,000 between the two parties, subject to regulatory and corporate approvals. Pursuant to the terms of the proposed Settlement Agreement, Wireless Age would forgive a portion of the debt, provided sufficient cash was paid by Newlook to Wireless Age to comply with a debt settlement agreement with the trustee in receivership of its former subsidiaries. Recently announced negotiations with the trustee have materialized into revised settlement terms for the remaining balance of $600,000 payable by September 30, 2010.

Newlook has also announced its intent to reduce its ownership in Wireless Age to approximately 20%, through the cancellation or transfer of shares to third parties in order to address anticipated transactional obligations in Wireless Age.

Further to the current restructuring, the Company has continued its negotiations for the exclusive rights to waste-to-energy technology and the rights to participate in Sunbay Energy plasma gasification projects in the United States, as previously announced on August 11, 2009. The Company anticipates that the transaction currently being negotiated is forthcoming, however, will be on revised terms. 

In addition, Wireless Age plans to own 20% of Sunbay Canada as well as developing Sunbay projects in the United States. Previously announced plans to retain the rights to Sunbay's Port Hope, Ontario project will now be held through the Company's stake in Sunbay Canada. Details pertaining to these transactions, related partnership deals and other information are anticipated to be announced in the near future.

Management expects that the waste-to-energy opportunities in Canada and the United States will benefit from synergies with the recently announced transaction to receive the exclusive marketing and sales rights for Fanotech Manufacturing Group products in the United States ("Fanotech USA"). Through Fanotech USA, the Company intends to create a national sales agency to market Canadian-built mobile waste handling equipment such as vehicles, bins, dumpsters and other waste-related metal products. 

The abovementioned transactions are subject to corporate and regulatory approvals. Furthermore, Gary Hokkanen has resigned as Chief Financial Officer of the Company.

John G. Simmonds, CEO of Wireless Age stated, "We feel that the name change and current negotiations to revise terms of the settlement with the trustee are essential elements in an overall restructuring to allow the Company to execute on the number of transactions that we have been negotiating, such as Fanotech USA, Sunbay Energy and the Settlement Agreement with Newlook." He added, "I believe the Company has turned a corner through this reorganization whereby we will emerge with a stronger corporate structure and a number of various opportunities in growth sectors."

Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.

Contact Information

  • Wireless Age Communications, Inc.
    John G. Simmonds
    Chairman & CEO
    905-833-2753 ext. 223