Environmental Announces Potential Business Combination
HINSDALE, Ill., May 8 /PRNewswire-FirstCall/ -- AEI Environmental Inc. (AEI) announced today that it has signed a Letter of Intent with Canal Capital Corporation (OTC Bulletin Board: COWP - news) to enter into a business combination that will result in one of the nation's largest publicly held cattle trading companies. The transaction will combine the Internet operations of AEI's CattleSale.com with the public stockyard operations of Canal.
Canal's history includes Canal-Randolph, which acquired United Stockyards in 1964, with the latter formed by the Swift Company in 1921. The Canal stockyard operations include the St. Joseph Stockyards that was incorporated in 1896 and the Sioux Falls South Dakota stockyards founded in 1917. The resulting new company will have over a 100-year heritage in cattle trading in the U.S.
In 2001, Canal and CattleSale.com together traded over 450,000 head of cattle. CattleSale.com, acquired by AEI in 2000 and one of the first Internet cattle trading platforms in the U.S., had $69 million in internet-based cattle transactions in 2001. Asher Edelman, Canal's Board Chairman and one of its largest shareholders stated, "This combination of the country's oldest cattle auction company with a modern internet technology company will be a winning team."
Certain non-livestock assets of Canal Capital will be distributed to existing Canal shareholders prior to close. After close, AEI will hold approximately 70% of Canal's common and preferred stock. The closing of the AEI/Canal transaction will be contemporaneous with the closing of a $2.5 million dollar private placement of preferred stock in the new combined company.
After closing, the company will be headquartered in the Chicago area, with representatives in several Midwest and Western States. Cattlesale.com will be improving the function, ease of use and information content of its website with a major new release this summer.
AEI Environmental Inc. Chairman, Ed McMillan, retired CEO of Purina Mills, stated, "To help accelerate the future growth of our cattle trading company, CattleSale.com is fortunate to have the history and public platform that Canal will provide. We expect this transaction to be a positive event for the shareholders of both companies."
For Additional Information Contact:
AEI Environmental Inc. 630-325-4232
Statements in this news release that are not descriptions of historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expect," "intends," "believes," "plans," "anticipates" and "likely" also identify forward-looking statements. All forward-looking statements are based on current facts and analyses. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to history of operating losses, anticipated future losses, competition, future capital needs, the need for market acceptance, dependence upon third parties, disruption of vital infrastructure and intellectual property rights. All forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Additional information on factors that may affect the business and financial results of the Company can be found in filings of Canal Capital Inc. with
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