TORONTO, ONTARIO--(Marketwired - Dec. 5, 2013) -
NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES
Penfold Capital Acquisition IV Corporation (the "Company") (TSX VENTURE:SEL), is pleased to announce that it has entered into a purchase agreement with 2286121 Ontario Ltd. ("Stardust") (the "Agreement") whereby it has agreed to acquire certain recycling equipment (the "Equipment") for an aggregate purchase price of $2,138,375 (the "Purchase Price"). The Purchase Price will be satisfied through the issuance of 17,819,791 common shares at a deemed price of $0.12 per share.
The Equipment, which the Company is currently leasing from Stardust, will allow the Company to achieve its 99.6% waste diversion rate as it processes electronic waste, separating the metals and plastics and compounding the plastics into a useable form. The Equipment will provide a complete waste solution for the Company's customers.
Mr. Vito Buffone, a director and the President of the Company, is a shareholder of Stardust. As such, the transaction between the Company and Stardust is deemed to be a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company will be complying with the provisions of MI 61-101 and will be seeking approval from the disinterested shareholders of the Company for the purchase of the Equipment.
Closing, which is expected to occur in the first quarter of 2014, is conditional on the receipt of shareholder and regulatory approval.
About Penfold Capital Acquisition IV Corporation
The Company, through its wholly owned subsidiary SLM Logistics Corporation, is dedicated to managing consumer and retail store returns and problematic electronics through a product management system. The Company manages product warranties, returns from receiving to end-of-life with quality assurance testing, factory servicing, resale through non-traditional channels and recycling of non saleable product to support a closed-loop distribution process. The Company is able to recycle the non-saleable returns it receives, thereby allowing customer returns to have a very low environmental impact. Independent Waste Audit Reports, since 2011, show the Company is able to achieve a consistent waste diversion rate of over 98.6%. This means brands using the Company's processes are able to divert over 98.6% of their product from landfill. The Company is currently working on rolling out this product offering to retailers to allow them to capture the environmentally conscious consumer. The Company currently operates only in Ontario.
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.
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for the Company's securities; the state of the industry; recent market volatility; the Company's ability to raise the necessary capital or to be fully able to implement its business strategies; and other risks and factors that the Company is unaware of at this time. The Company expressly disclaims any obligation to update any forward-looking statements except as may be required by law.