|By Marketwired .||
|December 2, 2013 07:00 AM EST||
DORVAL, QUEBEC -- (Marketwired) -- 12/02/13 -- Warnex Inc. (TSX VENTURE: WNX.H) ("Warnex" or the "Company") provides the following strategic update related to its recent activities.
In December 2012, as previously announced, the Company sold the last of its operating divisions. Since that time, in the context of the Company's ongoing assessment of strategic alternatives, management has been focused on reducing all corporate expenses. In this regard, Warnex is pleased to report that it has successfully concluded two transactions pursuant to which it has: (i) terminated the long-term lease for its Laval, Quebec facilities (the "Lease") against a one-time payment of approximately $893,000 made to the landlord; and (ii) sold all of the shares of one of its non-operating subsidiaries (the "Subsidiary") for a nominal payment, as well as a promissory note owing by the Subsidiary to Warnex in the amount of $50,000 at its face value. As a result of these two transactions, Warnex has successfully eliminated all future obligations under the Lease, which had an expiration date of January 31, 2018, and simplified its remaining corporate structure. The net cash savings to Warnex resulting from these two transactions is approximately $3,000,000 in future lease-related obligations.
"The termination of our long-term lease is a key component of the strategic review process, which serves to significantly and immediately reduce our current operating expenses and provides us greater flexibility to complete our ongoing strategic review," remarked Michael Singer, Chairman of Warnex. "With this milestone complete, we continue to aggressively explore a number of strategic options, including but not limited to a possible wind-up of the company, and expect to make a recommendation to shareholders in early 2014."
As a result of the termination of the Lease, Warnex has moved its corporate head office to 1375 TransCanada Highway, Suite 200, Dorval, Quebec.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release regarding the ongoing strategic review and future plans for Warnex are forward-looking and are subject to numerous risks and uncertainties, known and unknown. In addition to the various risks and uncertainties set out in the Risk and Uncertainties section of Warnex's Management's Discussion and Analysis, which can be found under Warnex's profile at www.sedar.com, the timing, nature and impact of any course of action that management of Warnex may decide to carry out with respect to the remaining assets of the Company is uncertain at this time.
Neither NEX nor its Regulation Services Provider (as that term is defined in policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.
Chairman of the Board of Directors, Warnex Inc.