News/ Sale concluded for $5.7 million +2007-05-22 13:48 ET - News Release
Mr. Al Kroontje reports
TELFORD COMPLETES SALE OF GEOMATICS BUSINESS
Telford Services Group Inc. has completed its previously announced sale of the controlling interest common shares of North West Geomatics Ltd. owned by Telford, as well as the Telford shareholder advance to North West and shareholder advance formerly.
The consideration received by Telford was allocated as follows:
i) $2,843,119 for the shares of North West;
ii) $981,655 for the shareholder advance and interest;
iii) $1,060,000 for a non-competition covenant; and
iv) $1,212,000 in management fees owing by North West to Alta Flights Inc. (a 100-per-cent-owned subsidiary of Telford) pursuant to previous management services agreements.
Telford also completed the acquisition of a beneficial ownership interest in certain premises located at the Calgary Airport that are owned by North West but occupied and used by Telford and/or its affiliates for a purchase price of $500,000.
The net cash proceeds of $5,656,774 will be used by Telford to retire outstanding debt and for general corporate purposes.