June 17, 2008 09:37 ET

Forterra Abandons Share Consolidation

TORONTO, ONTARIO--(Marketwire - June 17, 2008) - Forterra Environmental Corp. (Forterra) (TSX VENTURE:FTE) announced that it does not expect to proceed with the recently approved share consolidation.

On June 4, 2008, shareholders approved a resolution authorizing the consolidation of Forterra's common shares on up to a 1-for-5 basis. That shareholder resolution gave the board of directors the authority not to proceed with the consolidation or to consolidate the common shares on a basis less than 1-for-5.

The principal purpose of the consolidation was to allow for a financing by Forterra, possibly including warrants or convertible debt. The TSX Venture Exchange will not permit warrants or convertible debt exercisable at less than $0.10 per share. The shares of Forterra were trading below this price at the time the consolidation was announced and the consolidation was intended to increase the share price.

The shares of Forterra have traded above $0.10 since shortly before the recent shareholders meeting. The board of directors has concluded that the consolidation is no longer necessary in order to proceed with a financing. However, the board has reserved the right to proceed with the consolidation, if necessary.

About Forterra Environmental Corp.

Forterra Environmental Corp. is an emerging leader in the production and marketing of premium organic soil enrichment products. These environmentally friendly products boost fertility while replenishing the soil with organic matter, using worm castings, for sustainable, long-term benefits, including stronger root growth and drought and pest resistance. Forterra is the first company to commercialize the indoor, large-scale production of totally organic soil-enrichment products. Forterra uses red wriggler worms to convert organic waste into vermicompost or worm castings. Worm castings contain micronutrients, which are required for healthy plant development. Worm castings also contain microbes, which increase the rate at which plants take up available macronutrients and micronutrients.

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

Contact Information

  • Forterra Environmental Corp.
    Donald Green
    Chairman and Chief Executive Officer
    (905) 634-8647