Newlook Industries Corp.
TSX VENTURE : NLI

Newlook Industries Corp.

March 24, 2009 08:20 ET

Newlook Acquires Rights to Chapleau Renewable Energy Project

TORONTO, ONTARIO--(Marketwire - March 24, 2009) - Newlook Industries Corp. ("Newlook") (TSX VENTURE:NLI) is pleased to announce it has entered into a letter of intent with PowerPlay Energy Corp. ("PowerPlay") to acquire 90% of Sunbay Energy North Corp. ("Sunbay North"). PowerPlay owns 90% of Sunbay North and M & L Waste Management Inc. ("M & L"), a local waste haulage firm, owns the remaining 10% of Sunbay North.

Sunbay North is project developer of a biomass renewable energy project in Chapleau, Ontario. The primary feedstock of the project is to be composed of rail ties and forestry slash piles. The feedstock is subsequently transformed into synthetic gas and ash through purification with a high-temperature, non-combustion thermal gasification process (the "Chapleau Project").

As previously announced on February 23, 2009, Newlook received an offer from Sunbay Energy Corp. to collaborate in the Chapleau Project, pursuant to terms of a right of first refusal agreement, whereby Newlook has a right to provide seed financing with respect to any new projects entered into by Sunbay. As a result, Newlook subsequently negotiated the terms of the letter of intent to acquire 90% of the Chapleau Project through the acquisition of 90% of Sunbay North from PowerPlay.

To date, Newlook has invested approximately $250,000 as secured debt in Sunbay Port Hope Inc., an indirect wholly-owned subsidiary of PowerPlay (the "Sunbay Port Hope Loan"), as previously announced on October 27, 2008. As consideration for the acquisition of 90% of Sunbay North from PowerPlay, Newlook will cancel the Sunbay Port Hope Loan and forgive any indebtedness thereunder.

Sunbay North is managed by Jordan Oxley, who is an arm's length party to Newlook and is not currently a shareholder. Other than acquiring 90% of Sunbay North, Newlook does not plan to divert any of its resources to Sunbay North in the near term.

Newlook's investments at present are its 55%-stake in Wireless Age Communications, Inc. ("Wireless Age"), wholly-owned Grandvue Inc. and Onlinetel Corp. The status of the current receivership of Wireless Age's subsidiaries, Wireless Age Communications Ltd. and Wireless Source Distribution Ltd., is that the interim receiver notified Wireless Age on February 2, 2009 that the Wireless Age subsidiary assets were being sold. To date, no sale of assets has been indicated by the interim receiver.

Newlook confirms that no finder's fee will be paid for the transaction. Additionally, there is no relationship involving any non arms length party and Newlook, its insiders and the vendor other than a director of a Newlook insider is also a director and officer of PowerPlay and Sunbay. The transaction contemplated under the letter of intent is anticipated to close by April 15, 2009, subject to regulatory approvals.

Newlook Industries Corp., headquartered in Toronto, Ontario is a publicly traded company listed on the TSX Venture Exchange. For more information please call (416) 477-5656 or refer to www.sedar.com.

Completion of this transaction is subject to a number of conditions, including TSX Venture Exchange acceptance and disinterested Shareholder approval if required by the TSX Venture Exchange. The transaction cannot close until the required Shareholder approval, if any is required, is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular to be prepared in connection with the transaction, if required, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Newlook should be considered highly speculative.

The management of the company, who take full responsibility for its content, prepared this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements relating to future events and results that are based on Newlook's current expectations. These statements involve risks and uncertainties including, without limitation, Newlook's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Newlook Industries Corp.
    John G. Simmonds
    Chief Executive Officer
    (416) 477-5656 x301