home / news & events / press releases / November 17 2008
 
 NEWS & EVENTS
Press Releases
 
Be the first to know when new information is available about Forterra Inc. and its products..
Register For Email Alert
Forterra Acquires WormSense Inc. From Pagonis Live Bait

Download this press release (PDF 38 KB)

Puslinch, Ontario - November 17, 2008 - Forterra Environmental Corp. (TSX-V: FTE-V), an emerging leader in the production and sale of premium organic soil-enrichment products based on worm castings, today announced that it is acquiring the business of WormSense Inc. from privately held Pagonis Live Bait Ltd. The transaction includes an agreement for Pagonis to supply worm castings to Forterra.

To acquire WormSense, Forterra will issue 300,000 common shares at a deemed value of $0.15 per share for a total purchase price of $45,000. The issuance of the shares to complete this arms-length transaction is subject to the approval of the TSX Venture Exchange. Pagonis Live Bait, based in Toronto, is a family owned and operated company that has been serving the North American bait industry for more than 30 years. More information on the company is available at www.pagonislivebait.com. WormSense is a brand name and non-operating subsidiary of Pagonis.

"We expect to make future use of the WormSense brand name that we are acquiring. We believe, however, that the most significant aspect of this transaction is that it establishes a relationship between Forterra and Pagonis Live Bait that we expect will benefit both companies for years to come," said Richard Denyes, president and chief operating officer of Forterra. "As a by-product of its live bait worms business, Pagonis produces lots of worm castings. As a part of the WormSense acquisition agreement, Pagonis has agreed to supply Forterra the entire output of worm castings that it produces on a monthly basis. This will amount to between 30 and 100 cubic yards per month, in addition to which Pagonis will act as an agent for Forterra to source additional worm castings from the live bait industry across North America. We expect to need the worm castings sourced by Pagonis to supplement Forterra's own production in order to meet the level of demand that we foresee for our soil enrichment products," said Mr. Denyes.

"In turn, we expect that in the future, Forterra will become a supplier of the worms that we breed to Pagonis for its live bait business. This would generate additional revenues and profits for Forterra. As a part of this transaction, we also are pleased to have included a consulting agreement for an initial period of five years under which Chris Pagonis, President and Chief Executive Officer of Pagonis Live Bait, and his business will provide Forterra with a number of services. These services include marketing advice on the branding and sales of our products; the use of Pagonis packaging capabilities at its plant; consulting on new product development; and advice on production processes and worm health," added Mr. Denyes.

About Forterra Environmental Corp.

Forterra manufactures and markets environmentally friendly soil enhancers, using worm castings, which boost fertility while restoring the soil with organic matter for sustainable, longer-term benefits, including stronger root growth, and drought and pest resistance. Forterra products contain only organic material. They are ideal for golf courses, sports fields, lawn care, parks, nurseries, orchards, and vineyards. Essentially, Forterra uses red wriggler worms to convert organic waste into vermicompost or worm castings. Worm castings contain micronutrients, which are required for healthy plant development. Worm castings also contain microbes, which increase the rate at which plants take up available macronutrients and micronutrients. Further information is available on the company's website at www.forterra.com.

Forward-Looking Statements

This news release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity, the ability to sign contracts with customers, the development of markets for worm castings, its ability to breed and maintain a sufficiently large worm population, and regulatory requirements. Risks and uncertainties about Forterra's business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. Forterra assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements.

The TSX Venture Exchange Inc. has neither approved nor disapproved of the contents of this news release.

For further information:
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
Email: wertheim(at)wertheim.ca
Phone: (416) 594-1600
Cell: (416) 518-8479

 
 
 
Contact Us
 
 QUICK LINKS
Products
About Us
Financial Statements
  Investor Fact Sheet
   
 
WHY FORTERRA  |   PRODUCTS   |   INVESTORS  |   NEWS & EVENTS  |   RESEARCH & RESOURCES  |   ABOUT US  |   CONTACT US
COPYRIGHT 2008 FORTERRA     PRIVACY POLICY