Newlook Ceases Discussions With Copernic
June 04 2010 - 9:26AM
Marketwired
Newlook Industries Corp. ("Newlook") (TSX VENTURE: NLI) announced
today that the merger discussions between Sunbay Canada and
Copernic (NASDAQ: CNIC) have been terminated.
Through Newlook's due diligence process, it was discovered that
certain assets of Copernic were likely impaired.
Furthermore, a significant development occurred just prior to
closing that would have had, in our estimation, a significant
negative impact on the potential earnings of the combined
entity.
The impact of these two situations would have reduced, in our
opinion, the value of Copernic and make the relative values
previously agreed to be unfair to the shareholders of Newlook and
Sunbay.
Furthermore, we question the corporate governance at Copernic
which gave our nominees to the Copernic board concern, thus
resulting in their reluctance to stand as Directors.
This situation also put in doubt other related transactions and
has had implications to various dealings that Copernic has been
party to.
It is Newlook's intention to seek damages from Copernic and we
expect other parties to the various agreements to also explore the
negative impact to their businesses due to Copernic's actions.
Newlook Industries Corp., headquartered in King City, Ontario is
a publicly traded company listed on the TSX Venture Exchange. For
more information please call (905) 833-3072 or refer to
www.sedar.com.
The management of the company, who take full responsibility for
its content, prepared this press release. Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. This
press release contains forward-looking statements relating to
future events and results that are based on Newlook's current
expectations. These statements involve risks and uncertainties
including, without limitation, Newlook's ability to successfully
develop and market its products, consumer acceptance of such
products, competitive pressures relating to price reductions, new
product introductions by third parties, technological innovations,
and overall market conditions. Consequently, actual events and
results in future periods may differ materially from those
currently expected.
Contacts: Newlook Industries Corp. John G. Simmonds Chief
Executive Officer (905) 833-3072 x223
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