Napier Environmental Technologies Inc.
PINK SHEETS : NAITF

Napier Environmental Technologies Inc.

April 01, 2009 16:05 ET

Napier Environmental Technologies Inc.: Freeworld Exercises NAFTA Option

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2009) - Napier Environmental Technologies Inc. ("Napier") (PINK SHEETS:NAITF) has been notified by Freeworld Coatings Global (JSE:FWD) ("Freeworld") of their intention to exercise their option to acquire the North American operations of Napier. Closing is expected to occur on April 30, 2009. Coincident with the closing, Napier will enter into an interim Transition Services Agreement ("TSA") to manufacture its current offering of products until Freeworld are in a position to further assess the business. The responsibility for Napier personnel, excluding administrative and finance personnel, premises costs and other operational overhead shall be transferred to Freeworld upon closing. Based upon the latest financial information, Napier will receive proceeds from Freeworld of approximately $600,000, consisting of $100,000 for the IP, which has been received, and the balance for production machinery and inventory. In addition to these proceeds, Napier will retain all other net assets and the licensing arrangement for the IP with a major paint manufacturer for the North American market.

Napier is a Canadian company primarily engaged in the development, manufacture and distribution of a wide range of products utilizing environmentally advanced technology. The product lines include coating removal and wood restoration products for both the industrial/commercial market and the consumer/retail market. Upon completion of this transaction and upon the fulfillment of its obligations under the TSA, Napier will no longer own the rights to these products and will accordingly cease manufacturing.

This release and referenced materials contain forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in Napier's forward-looking statements. Such factors include, among others, the major paint manufacturer discontinuing the sale of products containing Napier's IP and Napier receiving no further royalty payments, the going concern status of Napier, historical losses and cash flow, the future need for capital and uncertainty of additional financing being available, the potential dilution to shareholders, the historical lack of dividend payments, dependence on key personnel, the influence of economic conditions, rate fluctuations and conflicts of interest. For further details regarding such risk factors, see the section entitled "Description of the Business - Risk Factors" in Napier's annual information form dated March 25, 2008 and filed with the British Columbia and Ontario securities commissions which can be found on SEDAR at www.sedar.com. Although Napier has attempted to identify important factors that could cause actual actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • Napier Environmental Technologies Inc.
    Steve Balmer
    President and COO
    (604) 526-0802