Winalta Inc.

Winalta Inc.

February 28, 2007 16:25 ET

Winalta Inc. Announces Acquisitions

SPRUCE GROVE, ALBERTA--(CCNMatthews - Feb. 28, 2007) - Winalta Inc. (TSX VENTURE:WTA.A) announces that it has signed Letters of Intent to acquire the shares of Xtreme Xcavation Ltd. as well as the shares of Kos Trucking Ltd./Klein Enterprises/Rifle Creek Enterprises.

Xtreme Xcavation Ltd. was founded by Bob Willows in 2003 and is a heavy equipment contractor located in central Alberta and performs land reclamation, subdivision construction and road and lease construction in central and northern Alberta.

Kos Trucking Ltd/Klein Enterprises/Rifle Creek Enterprises are related companies owned primarily by Danny Kos who founded Kos Trucking Ltd. in 1983. The companies own gravel pits and a crusher and haul aggregate. The company provides road construction for commercial and oil and gas companies.

The price for these acquisitions is $10.2 million plus assumption of debt. Payment will be 50% in Winalta shares at $2.35 per share and 50% cash. The shares will be subject to an escrow agreement and will vest over 3 years.

Both Bob Willows and Danny Kos will continue to run their companies under management agreements. Bob Willows will become Winalta Inc.'s Vice-President, Construction. The acquisitions are subject to further due diligence as well as exchange approval.

"The acquisition of these companies will greatly assist Winalta in its strategic plan of building communities in which Winalta will have serviced land for its manufactured and modular homes" says Artie T. Kos, President and CEO. "The single most challenging obstacle facing builders and manufacturers going forward in Alberta is developed land on which to place their homes. While Winalta has an adequate land inventory for its near term requirements thanks to an elite group of joint venture partners, we still feel it prudent that we maintain a level of adequate developed lots which the company controls as the level of production continues to escalate. These acquisitions are being carried out in conjunction with other steps by Winalta towards the goal of developing land for its own use. Both companies have a strong sustainable base of operation and are not dependant on Winalta to maintain activity levels."

Winalta Inc. and through its subsidiaries, is a land developer in western Canada as well as a producer of manufactured and modular CSA certified homes and site built homes. In addition, it manufactures industrial trailers and camps.

Winalta Inc. shares trade on the TSX Venture Exchange under the symbol "WTA.A."

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Winalta Inc.
    Artie T. Kos
    President and CEO
    (780) 960-6900
    (780) 962-9523 (FAX)