Tornado Global Hydrovacs Acquiring New Production Facility
CALGARY, Alberta, Dec. 17, 2019 (GLOBE NEWSWIRE) — Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TGH: TSX-V) is pleased to announce that it has entered into an agreement, subject to conditions, with an arm’s length third party vendor (the “Vendor”) to purchase an approximately 63,500 square foot facility built on approximately 17 acres of land located in Red Deer, Alberta (the “New Facility”) for $6.5 million (the “Purchase Price”), which is scheduled to close on February 3, 2020. The acquisition of the New Facility was necessary as the Company’s lease for its current production facility located in Stettler, Alberta (the “Existing Facility”) will expire on June 30, 2021 and the Company expects its production demands will have out-grown the capacity of the Existing Facility.
The Company paid a deposit of $150,000 toward the Purchase Price and the Vendor has agreed to provide a non-interest bearing vendor take-back mortgage for the balance of the Purchase Price with a $500,000 principal reduction due on February 1, 2021 and the balance of the principal due on July 1, 2021.
About Tornado Global Hydrovacs Ltd.
The Company designs, manufactures hydrovac trucks in Canada and sells hydrovac trucks for excavation service providers to the municipal markets and oil and gas industry in Canada and the USA. Hydrovac trucks use high pressure water to pulverize soil and turn it into mud, and then vacuum up the resulting mud into its tank. Tornado currently operates in North America. In China, the Company’s subsidiary is used principally to source certain parts to the Company’s North America operations.
For more information about Tornado Global Hydrovacs Ltd., visit www.tornadotrucks.com or contact: