Business
Bri-Chem Corp. announces letter of intent to acquire Weifang Steel Canada Ltd.
TSX Venture Exchange Symbol "BRY" EDMONTON, July 24 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Vent...
About this update from Bri-chem Corp.
[{"type":"text","content":"\n\n\n\nTSX Venture Exchange\n\n\nSymbol "BRY"\n\n\nEDMONTON, July 24 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture\nExchange: BRY) a leading Canadian wholesale distributor of industrial drilling\nfluids, products and services, is pleased to announce that it has entered into\na letter of intent (the "Letter of Intent") to acquire Weifang Steel Canada\nLtd. ("Weifang"), a Western Canadian-based master wholesale distributor of\nsteel products to the oil and gas and construction industries. Under the terms\nof the Letter of Intent, Bri-Chem has agreed to make an offer to purchase (the\n"Proposed Acquisition") all of the issued and outstanding shares of Weifang in\nconsideration for the purchase price of $8,470,000 and the repayment of\nrelated party loans in the approximate amount of $2,754,000.\n\n\nThe total aggregate purchase price of $11,224,000 consists of $8,224,000\ncash payable as to $5,224,000 on closing and $3,000,000 payable as to\n$1,000,000 60 days after the first anniversary of the close of the Proposed\nAcquisition (the "Closing Date"), $1,000,000 60 days after the second\nanniversary of the Closing Date, and $1,000,000 60 days after the third\nanniversary of the Closing Date and $3,000,000 by way of the issuance of\n1,304,348 common shares at a price of $2.30 per share. The Proposed\nAcquisition of Weifang will expand and diversify Bri-Chem's wholesale\ndistribution business and will be immediately synergistic by providing Weifang\nbroader territorial coverage for its products, specifically in Saskatchewan\nand Northern USA.\n\n\nWeifang, a private corporation duly incorporated and validly existing\nunder the laws of the Province of Alberta, is a growing metal wholesale\ndistributor in Western Canada and the USA. Weifang's corporate headquarters is\nlocated in Nisku, Alberta and it has two operating divisions: Steel Pipe and\nProducts Division and a Manufactures Direct Sales Trading Division. Weifang\nspecializes in the distribution of metal products through its warehouse\nfacility in Nisku, Alberta, Canada and 3 distribution sales offices in the\nU.S.A. Weifang distributes drill pipe, carbon steel welded pipe, carbon steel\nseamless pipe, stainless steel welded pipe, stainless steel seamless pipe,\ntubing & casing, sucker rods, galvanized steel prod...