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Wireless Age Communications, Inc.
PINK SHEETS: WLSA
Oct 05, 2009 09:58 ETWireless Age Enters Into Settlement
TORONTO, ONTARIO--(Marketwire - Oct. 5, 2009) - Wireless Age Communications, Inc. ("Wireless Age" or the "Company") (PINK SHEETS:WLSA) announced that it has entered into an agreement (the "Settlement Agreement") with the receiver and trustee in bankruptcy (the "Trustee") of its former subsidiaries, Wireless Age Communications Ltd. ("Wireless Communications") and Wireless Source Distribution Ltd. ("Wireless Source"). Pursuant to the Settlement Agreement, Wireless Age agreed to pay Wireless Communications and Wireless Source a total of CAD$750,000 (the "Settlement Amount") to settle outstanding loans totaling approximately CAD$8.3 million provided by Wireless Communications and Wireless Source to the Company.
Pursuant to the terms of the Settlement Agreement, the Trustee has agreed to seek court approval for the arrangement on or before October 9, 2009. The Company has agreed to pay an initial installment of CAD$50,000 within two days following the expiry of the 30-day appeal period after approval of the court order. The remaining CAD$700,000 will be payable on or before December 31, 2009. If the Company defaults on payment of the Settlement Amount, it has agreed not to contest actions taken by the Trustee to recover a reduced amount of CAD$3.25 million, less any payments made on the Settlement Amount, rather than the full CAD$8.3 million amount of the loans.
Gary N. Hokkanen, Wireless Age CFO stated; "The agreement is necessary to improve the Company's balance sheet. If completed prior to year-end, it will settle the approximately CAD$8.3 million accrued special charge loss provision booked in December 2008, representing a substantial gain. In addition, it will allow Wireless Age to take its first steps to bring its SEC reporting back up to date and migrate to a more senior listing."
Wireless Age agreed to provide a release to the Trustee and others effective upon the expiry of the appeal period, and the Trustee agreed to provide a release to the Company, effective upon payment of the Settlement Amount. All parties to the Settlement Agreement agreed that the exchange of releases and payment of monies do not constitute an admission of liability, but are simply a compromise of disputed claims.
John G. Simmonds, Wireless Age CEO commented; "I'm extremely pleased with this agreement, as it allows us to arrange a restructuring with our controlling shareholder and move towards a renewable energy transaction, subject to regulatory approvals."
Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.
For more information, please contact
Wireless Age Communications, Inc.
John G. Simmonds
Chairman & CEO
905-833-2753 ext. 223
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