Komet Manufacturers Inc. - Approval of sale of assets and termination of lease

About this update from Brunswick Exploration, Inc.

[{"type":"text","content":"\n\n\n\n\n\nMONTREAL, May 3, 2012 /CNW Telbec/ - Komet Manufacturers Inc. (TSXV:\n AQD) (\"Komet\") announces that at the annual general and special meeting of\n shareholders held on Monday April 23, 2012, the minority shareholders\n of Komet approved by a vote of 81.99% \"for\" and 18.01% \"against\" (i)\n the sale of its remaining inventory at 60% of its book value to Aquadis\n International Inc. (a related company) and (ii) the termination of the\n 42,940 square foot lease (the \"Lease\") between Komet and Aquadis Group Inc. (a related company) in\n consideration of the payment of a penalty of $100,000 in cash.  The\n future obligation under the terms of the Lease, expiring on April 30,\n 2015, was estimated by Komet at approximately $900,000.\n\n\nAt a meeting held on February 24, 2012, the directors of Komet\n acknowledged that Komet has been operating at a loss for the past nine\n quarters, that its business was no longer viable, that it had ceased\n all production activities by selling most of its production equipment\n and had restricted its activities solely to distribution. Komet\n currently employs only one sales person and has been trying to sell its\n inventory for several months, with limited success.\n\n\nIn order to stop the losses, the directors decided to cease all the\n activities of Komet, liquidate its remaining inventory in an orderly\n fashion and settle its outstanding debts and obligations, the principal\n of which was the Lease.\n\n\nThe directors obtained an independent evaluation of Komet's inventory as\n of February 29, 2012, from Groupe Marc Brosseau Inc., a certified\n evaluator.  Komet had determined that such inventory had a book value\n of $489,538, as at February 29, 2012. Groupe Marc Brosseau Inc. valued\n the inventory between $161,000 and $192,000, on an orderly liquidation\n basis (representing between 33% to 39% of the above mentioned book\n value).  Aquadis International Inc. (a company related to Komet and\n controlled by the Nadeau family) offered to purchase such inventory at\n 60% of book value.  After taking into account sales amounting to\n $117,886 in March and April, the book value of the balance of the\n inventory as at April 27, 2012 was reduced by $74,114 to $415,424.  As\n soon as authorized to do so by the TSX Venture Exchange, Aquadis\n Internat...

More updates from Brunswick Exploration, Inc.