TORONTO, ONTARIO--(Marketwire - July 18, 2012) - Semcan Inc. (TSX VENTURE:STT) ("Semcan" or the "Company") announced that it has today closed a new bank operating facility under which Royal Bank of Canada (the "Bank") will provide an operating loan with a limit of $1,000,000 (the "Facility"). The amount available under the Facility is subject to the Company's levels of eligible accounts receivable and inventory. The interest rate is prime + 2.4%, and the Bank has been granted a first secured position with respect to the Company's assets. The Facility replaces a $200,000 operating loan granted by the Company's former bank.
"We are pleased to announce this further strengthening of the Company's financial resources," said David Deacon, Semcan's CEO. "This Facility will immediately provide the Company with additional financial flexibility, and we look forward to partnering with the Royal Bank as we grow Semcan's business."
About Semcan Inc.
Semcan is a North American supplier of industrial processes and environmental solutions with specific emphasis on water remediation and emission control systems.
The Company is of the view that environmental considerations and preventative technologies are becoming a prerequisite of most modern industrial expansion, particularly in the mining, oil & gas and power sectors.
The Company's principal focus is the conceptual design, engineering, project management, and assembly and installation of complete bulk material handling systems used to clean up water and control air emissions- from the storage silos, to the conveying systems, to the computerized electronic controls. The systems are utilized internationally in a broad range of industries.
Caution Regarding Forward-Looking Information
This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and expectations and are based on information currently available to management of Semcan. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including risks outlined under "Risk Factors" in our Annual Information Form, which is posted at www.sedar.com. In evaluating these statements, investors should specifically consider various factors, including such risks as Investment Risk; Business Valuations; Condition of Capital Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate Risk; Competition; and Reliance on Key Suppliers. One or more of these "Risk Factors" could cause actual events or results to differ materially from any forward-looking statement. These factors should not be considered exhaustive. Although the forward-looking statements contained in this press release are based on what management of Semcan considers to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and none of Semcan nor its directors assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.
Neither the 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 of this release.