Perlite Canada Inc.

Perlite Canada Inc.

November 14, 2008 15:00 ET

Perlite Canada Inc. Announces the Acquisition of VIL Vermiculite the Canadian Perlite and Vermiculite Business of Nomrmiska Corporation

MONTREAL, QUEBEC--(Marketwire - Nov. 14, 2008) - Perlite Canada Inc. (TSX VENTURE:PCI) (the "Company") is pleased to announce the acquisition of VIL Vermiculite from Normiska Corporation for a purchase price of $3,300,000 paid cash at closing today November 14, 2008.

VIL Vermiculite is the Canadian perlite and vermiculite business of Normiska Copoation which includes the perlite and vermiculite processing plant located in Lachine, Quebec. VIL Vermiculite has been in operation for over 40 years. VIL Vermiculite is a strong and stable business. According to VIL Vermiculite, approximately 70% of its customers are located in Ontario and 30 % in Quebec and New-Brunswick.

This acquisition is a significant step in the Company's growth. It constitutes a geographic expansion of its activities and a diversification of its customer base. It also secures the business position of the Company in Eastern Canada and allows the Company to be ready for its next phase of development.

The acquisition will also allow the Company to maximize its infrastructures once the Company and VIL Vermiculite operations will have been integrated. The management of the Company estimates that the integration should take between 12 to 18 months.

The purchase price was financed by i) a credit facility of $2,000,000 from BMO Banque of Montreal, ii) a loan of $1,000,000 from Fonds regional FSTQ Laval and iii) a cash payment of $300,000 from the Company.

Perlite Canada Inc. specializes in the transformation, distribution and sale of perlite and vermiculite, minerals used in the horticultural and industrial sectors.

The common shares of Perlite Canada Inc. trade on the TSX Venture Exchange.

The TSX Venture Exchange has not examined either the adequacy or the accuracy of the information contained in this press release and declines any responsibility with regard to this information.

Contact Information

  • Perlite Canada Inc.
    Richard Barabe and Martin Joyal
    514-336-6651 (FAX)