Business
Garneau Inc. announces sale of Nisku Equipment and first quarter results for the three months ended March 31, 2010
Garneau Inc. announces sale of Nisku Equipment and first quarter results for the three months end...
About this update from Green Arrow Resources, Inc.
[{"type":"text","content":"\n\n\n\n May 31, 2010 (Canada NewsWire Group) -- NEX - GAR.H\n\n Garneau Inc. ("Garneau" or the "Corporation") (GAR.H: NEX) On May 28, 2010 the Corporation announced its President and Chief Executive Officer Glen Garneau was terminated as an employee of the Corporation, effective January 31, 2010. Subsequent to his termination, Mr. Garneau entered into a consulting agreement with the Corporation pursuant to which he provides the services of acting President and Chief Executive Officer.\nOn May 12, 2010, the Corporation entered into an asset purchase agreement that became effective on May 28, 2010 with Mr. Garneau (the "Agreement") pursuant to which Mr. Garneau agreed to purchase the Nisku fabrication equipment from the Corporation (the "Transaction") for a purchase price of $327,230.61 (the "Purchase Price"). Mr. Garneau has paid a deposit of $50,000 through a cash payment of $25,000 and a waiver of $25,000 of the severance owed to him as a result of the termination of his employment with the Corporation pursuant to his employment agreement. The remainder of the Purchase Price, being $277,230.61, will be deducted from the outstanding severance owed to Mr. Garneau as a result of the termination of his employment with the Corporation pursuant to Mr. Garneau's employment agreement. The Transaction is subject to regulatory approval.\nEntering into the Transaction resulted from the process undertaken by the special committee (the "Special Committee") of the board of directors of the Corporation (the "Board") in the Special Committee's continuing efforts to preserve shareholder value. The Special Committee will continue in its review of strategic alternatives for Garneau, including the possible sale of the Corporation's remaining real property and equipment, which are situated in a prime industrial location in Nisku, Alberta and/or the re-organization of the Corporation to facilitate a potential corporate transaction.\nDue to the Mr. Garneau's interest in the Transaction, the Transaction is a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Corporation is relying on the financial hardship exemption from the valuation and minority approval requirements o...