CALGARY, Alberta, Feb. 03, 2020 (GLOBE NEWSWIRE) -- With reference to its prior news release dated December 17, 2019, Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TGH:TSX-V) is pleased to announce that it has closed the purchase of an approximately 63,500 square foot facility built on approximately 17 acres of land located in Red Deer, Alberta (the “New Facility”) for $6.5 million (the “Purchase Price”) from an arm’s length third party vendor (the “Vendor”).
The Company paid an aggregate of $500,000 toward the Purchase Price at closing and the Vendor provided a non-interest bearing vendor take-back mortgage secured against the New Facility for the balance of the Purchase Price with a $500,000 principal reduction due on February 1, 2021 and the balance of the principal due on July 1, 2021.
The acquisition of the New Facility was necessary as the Company’s lease for its current production facility located in Stettler, Alberta (the “Existing Facility”) will expire on June 30, 2021 and the Company’s current production demands have already out-grown the capacity of the Existing Facility and demand for even more production capacity is expected to be needed going forward. The Company expects to move a significant portion of its production activities to this New Facility over the next 6 months.
About Tornado Global Hydrovacs Ltd.
The Company designs and manufactures hydrovac trucks in Canada and sells hydrovac trucks for excavation service providers to the municipal and oil and gas markets in Canada and the USA. Hydrovac trucks use high pressure water to pulverize soil and turn it into mud, and then vacuum up the resulting mud into its tank. Tornado currently operates in North America. In China, the Company’s subsidiary is used principally to source certain parts to the Company’s North America operations.
|For more information about Tornado Global Hydrovacs Ltd., visit www.tornadotrucks.com or contact: |
|Bill Rollins||Al Robertson|
|Chief Executive Officer||Chief Financial Officer|
|Phone: (403) 204-6333||Phone: (403) 204-6324|
|Email: firstname.lastname@example.org||Email: email@example.com|
Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of the words “anticipates”, “should”, ‘‘may”, “expected”, “expects”, “believes” and other words of a similar nature are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Tornado believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Such statements include statements with respect to the Company’s expectation that demand for even more production capacity is needed going forward and the expected moving of a significant portion of its production activities to this New Facility over the next 6 months. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Tornado. The forward-looking statements contained in this news release represent Tornado’s expectations as of the date hereof, and are subject to change after such date. Tornado disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.
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