Wireless Age Communications, Inc.

Wireless Age Communications, Inc.

January 20, 2010 11:55 ET

Wireless Age Enters Into Letter of Intent to Acquire Waste Equipment Manufacturer

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2010) - Wireless Age Communications, Inc. (PINK SHEETS:WLSA), ("Wireless Age" or "the Company") announced today that it has entered into a letter of intent to acquire the Fanotech Manufacturing Group.

Closing is subject to the necessary approvals and consent of all interested parties including the boards of directors of Fanotech, Wireless Age and the Company's controlling shareholder Newlook Industries Corp., minority shareholders and securities regulators in Canada and the United States.

The Fanotech Manufacturing Group consists of Fanotech Enviro Inc., Fanotech Waste Equipment Inc. and 1099958 Ontario Ltd. The Fanotech Manufacturing Group manufactures mobile waste products for the waste industry. Products include vehicles, bins, dumpsters and other waste related metal products. Fanotech operates from two facilities with combined space of approximately 160,000 square feet in Bracebridge and Huntsville, Ontario, Canada.

The Company has agreed to pay cash for the net book value of the assets and restricted common stock for goodwill based on historic trailing earnings before interest, taxes, depreciation and amortization. The final purchase price will be adjusted based on audited financial statements for the most recent fiscal year end preceding closing.

Unaudited interim financial statements prepared by management indicate that annualized revenues are currently in the order of $10 million.

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