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Trading Symbol: VPI
VANCOUVER, April 3 /CNW/ - Vitality Products Inc. (the "Company") wishes to report that its operating division, Vitality Fuels, is making significant progress in completing the feasibility study previously announced. The Company now needs to select a specific site to locate the proposed plant prior to completing the feasibility study. The revised estimated completion date for the feasibility study is August 2008.
The Company has not purchased land in connection with the construction of the proposed plant or made any commitments to do so. The Company continues the process of selecting a suitable site. The Company needs to finalize a specific site selection before it can complete the feasibility study. An analysis of water rights, air pollution rights, wetlands and other characteristics associated with the land in connection with the construction of the proposed plant needs to be completed for inclusion into the feasibility study.
The primary reason for the delay in the completion of the feasibility study is the delay in the site selection process. The Company has targeted a specific 200-acre site in Whatcom County but the site was sold as part of a larger 1,100-acre parcel in December 2007. The Company is in discussions with the new owner and the new owner expects that it will be in a position to negotiate a sale in three months. This will extend the project timeline. The Company is looking at the end of August 2008 as the new date for a completed feasibility study. If positive, financing will take three to six months assuming market conditions are favourable. The expectation to complete the construction of the proposed plant would be revised to Spring 2011.
Many of the requirements to build the proposed plant at a Whatcom County site are satisfied. The Company has received confirmations of the availability of power, natural gas, rail and road transportation, and grain feed stock (corn). The Company has received interest in purchasing ethanol from the proposed plant and the US federal government's energy bill of 2007 will increase demand for ethanol in the US market in the long term. The Company has no executed binding agreements in place relating to the proposed plant with any of the entities that have provided confirmations, letters of intent or letters of interest for the purpose of assisting in the completion of the feasibility study.
The purposes of the feasibility study are to provide the Company with a definitive conclusion as to the economic viability of the proposed plant and to assist the Company in raising the necessary funds to build the proposed plant in Whatcom County, Washington, to present to potential investors and lenders who will be able to rely upon this report in making an investment decision. This feasibility study will contain very detailed information about the proposed plant, including location, design, operation, timing of completion, budgets, permitting processes, marketing and projections and the like, as well as the risks involved in embarking on such an enterprise. Some of these risks include, but are not limited to, (1) financing; (2) the availability of feedstock, water, electrical power and natural gas; (3) access to rail, all weather roads and personnel; (4) permits; (5) changes to government regulations; (6) adverse sales; and (7) competition.
The Company confirms that should it in the future enter into a transaction or series of transactions which may redirect the Company's resources and change the nature of its business; such that they may constitute a "Change of Business" ("COB") under TSX Venture Exchange ("Exchange") Policy 5.2, trading in the Company's shares will be halted and the Company will thereafter issue a comprehensive news release in accordance with Policy 5.2. Trading will then remain halted until the completion of the COB unless the Exchange otherwise reinstates trading on compliance by the Company of the requirements of Policy 5.2. The Company will work closely with the Exchange, and by way of pre-filing consultation, should such a determination so arise.
Forward-Looking Information Statements: This release may contain forward-looking information based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. These statements are not guarantees of future performance and involve a significant number of risks, uncertainties and assumptions.
On behalf of the Board of
VITALITY PRODUCTS INC.
(signed)
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William N. Grant, President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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