VANCOUVER, Nov. 6, 2002 — Synex International Inc.’s subsidiary Synex Energy Resources Ltd., has executed a Stock Purchase Agreement with The New World Power Corp. to purchase all of the shares of Wolverine Power Corp., a unit of New World.
The Stock Purchase Agreement is scheduled to close on or before December 31, 2002 and is subject to the approval of the shareholders of New World as well as the provision of additional disclosure of information regarding Wolverine.
Wolverine owns and operates four hydroelectric facilities along the Tittabawassee River near Midland, Michigan, totaling 11 MW. Synex Energy has a US$1 million Convertible Loan plus unpaid interest and related charges in the amount of about US$250,000 with New World and Wolverine, which was due on June 30, 2001 and is secured by a first mortgage on the assets of Wolverine.
Under the terms of the agreement, Synex Energy will release New World from its obligations in respect of the Convertible Loan and will make a cash payment for purchase of the stock and payment of certain Wolverine liabilities.
In addition, Synex Energy has agreed to fund about US$350,000 of construction work required by the Federal Energy Regulatory Commission to be completed by December 31, 2002. In the event that the transaction does not close, the funds advanced by Synex Energy for the construction work would rank equally with the first mortgage.
New World is a public company and is involved with businesses associated with independent power production.
Synex International Inc. is a public company listed on the Toronto Stock Exchange and is in businesses covering the development and operation of electrical power facilities and the provision of consulting engineering services in water resources, particularly hydroelectric facilities.
Source: Synex International Inc.