Vancouver, British Columbia, Canadian Zeolite Corp. (the “Company”) (TSX.V: CNZ) (OTCQB: CNZCF) (FSE: ZEON) an international marketer and distributor of zeolite products is pleased to announce the signing of a binding Letter of Intent (“LOI”) to acquire a 100% interest in Earth Innovations Inc. (“Earth Innovations”) from a privately held Canadian company (the “Seller”). The acquisition is subject to various approvals, including by shareholders of the Seller and the TSX Venture Exchange.
Earth Innovations is the leading provider of retail, industrial and commercial zeolite products in North America with aggregate sales in excess of C$3.5-million since 2014. Flagship brands includes ecoTraction™ and Smell Grabber™, available nationally in Canada and the United States. In 2008, Earth Innovations was a successful contestant on CBC’s The Dragon’s Den (http://www.cbc.ca/dragonsden/pitches/ecotraction) launching Earth Innovations on its mission to produce, market and distribute truly environmentally beneficial products to address identified needs in winter traction control, odour management and water quality.
Earth Innovations has successfully established distribution throughout Canada including Home Hardware Stores, The Home Depot, Acklands Grainger Inc., Ace Hardware, True Value, Bolt Supply House, Federated Co-op, Overwaitea Foods and others. The products are also available nationally in the United States through Do It Best Stores, Grainger Limited, Amazon.com and other online retailers. Earth Innovations also brings a long-standing supply relationship with a USA-based premium zeolite supplier.
Mr. Ray Paquette, CEO of Canadian Zeolite stated, “Bringing together the retail and industrial/commercial markets of Earth Innovations with the municipal and industrial focus of Canadian Zeolite is an obvious and complimentary mix. The acquisition will allow the Company to leverage Earth Innovations’ platform by adding our products and to better serve our increasing commercial and municipal client base. We will continue to develop new innovated products with access to immediate distribution channels through the relationships developed by Earth Innovations.”
Stephen Coates, President of Earth Innovations, commented that “Combining the respective parties’ years of research, product development and supplier and customer relationships will continue to grow the domestic and international zeolite markets, resulting, I believe, in Earth Innovations becoming the pre-eminent provider of zeolite-based solutions for a better world. The entire Earth Innovations team welcomes this transaction and will continue to manage and grow the business with the support coming from Canadian Zeolite.”
Pursuant to the terms of the LOI, the Company will issue to the Seller 3,000,000 common shares of the Company, which shares shall be subject to an 18-month escrow schedule. In addition, the Company will pay $100,000 in cash, payable $50,000 upon closing and $50,000 in six months from the closing date of the transaction.
The Company anticipates closing this transaction on or about November 30, 2017.
$750,000 Strategic Financing
The Company announced that it intends to complete a private placement of up to 2,500,000 units at $0.30 per Unit (the “Private Placement”). Each Unit will consist of one common share of the Company and one share purchase warrant (“Warrants”). Each Warrant will be exercisable to acquire one common share at a price of $0.75 for a period of one year (the “Expiry Date”), subject to an accelerated exercise clause which will provide that, if at any time after the date that is four months and one day after the date of issuance of the Warrants, the closing price of the Company’s common shares on the TSX Venture Exchange is at or above $1.00 per share for a period of 10 consecutive trading days (the “Triggering Event”), the Company may, within five days of the Triggering Event, accelerate the Expiry Date by giving notice thereof to the holders of the Warrants by way of news release, and in such case the Expiry Date will be the first day that is 30 business days after the date on which such notice is given by the Company announcing the Triggering Event. Funds derived from the private placement will be used to focus on product development, brand marketing and sales support for Earth Innovations through its distribution channels.
About Canadian Zeolite
Canadian Zeolite is an environmentally friendly Green Tech business involved in the exploration, development and production of the natural industrial mineral zeolite. The Company is a producer of natural zeolite from one of its several deposits in British Columbia, Canada and works with dedicated global advisers recognized as world leaders in the world of zeolite technology for new product development. Canadian Zeolite continues to pursue value-add acquisitions in the growing zeolite industry
About Earth Innovations Inc.
ecoTraction™ and ecoTractionPRO™ are the leading alternatives to toxic, corrosive and environmentally harmful ice melters. Harnessing the hydroscopic (liquid absorbing) magic of the natural volcanic mineral zeolite, ecoTraction products provide constant, effective traction on ice and hard packed snow and are effective to temperatures as low as -50 degrees Celsius. ecoTraction is safe for use on concrete, brick and asphalt and is safe for use around people, plants and pets. www.ecotraction.com
Smell Grabber™ Household and Waste Deodorizer harnesses the immense power of zeolite’s negative chemical charge causing many odorous and harmful gases to bond directly within the micro-porous structure of Smell Grabber – literally removing the source of offending odours in all type of situations. Smell Grabber is safe for use around people, plants and pets and is actually beneficial in composting processes. www.smellgrabber.com
On behalf of the Board of Directors,
President & CEO
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.
Certain statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the completion of the transaction between the Company and Earth Innovations, the expected benefits of such transaction, and the completion of the Private Placement. These statements address future events and conditions which may or may not occur and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete the transaction with Earth Innovations, the ability to realize the perceived benefits of such transaction, and the ability to complete the Private Placement.. Except as required under applicable securities laws, Canadian Zeolite does not assume any obligation to update any forward-looking statements.