TekModo Announces Annual and Special Meeting and Provides Operational Update

TSX-V:TEK

ELKHART, IN, June 6, 2018 /CNW/ - TekModo Industries Inc. (TSX-V: TEK) ("TekModo" or the "Company") has mailed out its information circular in connection with a meeting to approve the sale of its operating subsidiaries (the "Transaction") to TS Investment Holdings, LLC ("TS Investment").  The annual and special meeting is scheduled to be held on June 25, 2018 at Suite 650, 669 Howe Street, Vancouver, B.C. Shareholders will be asked to approve the Transaction as well as a share consolidation of the outstanding share capital of the Company on the basis of ten (10) pre-consolidation common shares for one (1) new post-consolidation common share, in contemplation of a reorganization and listing on the NEX board of the TSX Venture Exchange. Closing of the Transaction remains subject to a number of conditions, including obtaining shareholder approval, extensions from convertible debenture holders, and a release from the Company's bank for TekModo's guarantee on an equipment loan in the approximate amount of US$900,000. 

In addition to the valuation prepared by Evans & Evans, Inc. which has confirmed a value of between CDN$3.44 million and CDN$3.58 million (US$2.65 million and US$2.75 million) for the Company, TekModo has obtained a fairness opinion confirming that the Transaction is fair from a financial point of view to its shareholders. The Transaction along with the valuation and the fairness opinion are described in more detail in the Company's information circular which is available at www.sedar.com.

Operational Update

GRP Line
The GRP line has been running periodically for testing.  Long length runs have exposed shortcomings in equipment selection and mechanical design. At this time, management cannot estimate when customers can expect to receive prototype materials for testing.  

Large Laminator
The Company's large laminator continues to operate without issue producing the lightweight Fortis composite substrate.

Other Operational News

• The roll coater remains operational. The roll coater allows for the continuous lightweight Fortis composite substrate to be bonded directly to client-provided FRP exterior skins to produce one-piece, composite sidewall, roof, and/or front wraps and rear walls.  Production remains strong and the line is running at its highest speed due to recent improvements.
• The little laminator remains static as TekModo has replaced the need for its use.  The Company is seeking tolling jobs to run on this line to fill capacity.
• The Company continues to work with suppliers and evaluate new opportunities to increase customer satisfaction and the quality of manufactured goods and distributed products.
• TekModo has recently been exploring and developing a Net Shape Molding technology that may compete in the fiberglass and injection molding markets. The technology is currently being tested and the timeline for commencing production has not yet been determined.

On Behalf of the Board of TekModo Industries Inc.

John Proust
Executive Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Notes Regarding Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "will", "intends", "is expected to" and variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements. In particular, the Company's expectations regarding the completion of the transaction, the share consolidation, the conditions to closing the transaction, the repayment of the Company's debt, the extensions from the debenture holders, the release from the Company's bank, the reorganization of the Company and listing on the NEX, certain operational updates, shareholder approval and exchange acceptance are forward-looking statements. There can be no guarantee that that the transaction contemplated by the definitive agreement will be completed, the formal valuation will reflect the estimated valuation, shareholder approval and exchange acceptance will be obtained, or that a strategic alternative will be pursued if the transaction does not proceed. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

SOURCE TekModo Industries Inc.