News
NEWLOOK TO INVEST IN CLEANTECH ENERGY
TORONTO, ONTARIO, October 7, 2008 - Newlook Industries Corp. ("Newlook") (TSXV: NLI) is pleased to announce that it intends, subject to regulatory approval, to enter into a series of agreements to invest in cleantech energy opportunities.
After a decade of market maturation, clean technology, or "cleantech", has been established as a viable investment category. Cleantech should not be confused with the terms environmental technology or "green tech" popularized in the 1970s and ‘80s. Cleantech refers to innovative technology and related business models that combine to create competitive returns while providing solutions to global challenges. Where greentech or envirotech represent the highly regulatory driven, more traditional end-of-pipe/last resort technology with limited opportunity for attractive returns, cleantech is driven by market economics and offers financial upside and sustainability.
Newlook has agreed to make a $615,000 investment in PowerPlay Energy Corp. ("PowerPlay") and to provide a 12%, $1,000,000 senior secured loan to Sunbay Port Hope Inc. ("Sunbay Port Hope"). PowerPlay is a private corporation organized to pursue a series of opportunities in plasma gasification. Sunbay Port Hope is a wholly-owned subsidiary of Sunbay Energy Corp. ("Sunbay"), which is a majority-owned subsidiary of PowerPlay. Sunbay Port Hope represents the first of these opportunities.
The investment in PowerPlay, if fully consummated, would result in Newlook holding 19.9% of the common shares of PowerPlay. Under the terms of the investment, Newlook will subscribe for 250,000 PowerPlay common shares from treasury at $1.00 per share, and acquire 300,000 common shares from PowerPlay’s affiliates at $0.50 per share for $150,000, payable in five installments beginning October 15, 2008. Newlook will also receive an option to buy 200,000 common shares from PowerPlay’s affiliates at $1.00 per share, expiring December 31, 2008.
The loan to Sunbay Port Hope will be provided in installments beginning upon receipt of regulatory approval and ending on May 1, 2009. The loan will be secured by a general security agreement over the assets of Sunbay Port Hope and will mature on August 31, 2011. If Newlook performs under the loan agreement it will receive 10% of the outstanding common shares of Sunbay Port Hope. The purpose of the loan is to assist Sunbay Port Hope to acquire the required permits and approvals to build a cleantech energy recovery plasma gasification facility in Port Hope, Ontario.
"This is an exciting transaction," said Mr. John Simmonds, Chairman and CEO of Newlook, today. "Upon due diligence of this company and sector, it is clear that significant opportunities exists in the cleantech sector. Energy-from-waste, or "energy recovery" technology is rapidly changing the way people look at what we do with the incredible amounts of garbage we generate. PowerPlay and its subsidiaries have some exciting projects that we are pleased to be a part of." Upon closing of the private placement, Mr. Simmonds will be appointed to PowerPlay’s Board of Directors. Additionally, Newlook will be offered the opportunity to acquire up to 100,000 PowerPlay common shares from PowerPlay affiliates at $0.15 per share. Newlook will also be provided right of first refusal to provide any seed finance to future energy projects falling under Sunbay or its subsidiaries.
About PowerPlay Energy Corp.
PowerPlay Energy was established to develop cleantech solutions, with a distinct focus on projects employing energy-from-waste tools and technology—specifically plasma gasification. PowerPlay is positioned as an originator/incubator, identifying project opportunities, getting involved at inception, providing funding, sharing management and technical expertise. The result: a family of cleantech companies and projects helping to recover energy from waste and change the way the world looks at garbage.
Newlook Industries Corp., headquartered in Toronto, Ontario is a publicly traded company listed on the TSX Venture Exchange. For more information please call (416) 477-5656 or refer to www.sedar.com.
The management of the company, who take full responsibility for its content, prepared this press release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements relating to future events and results that are based on Newlook's current expectations. These statements involve risks and uncertainties including, without limitation, Newlook's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.
For more information contact:
John G. Simmonds
Chief Executive Officer
Newlook Industries Corp
Telephone: (416) 477-5656 x301
