Mercator makes move into distribution

LAVAL, Que. — Mercator Transport Group made good on a September promise and has moved forward with a strategic plan to begin distribution activity.

The transport group recently announced an agreement concerning the acquisition of Cap Canada Distribution’s assets, including without limitation the exclusive rights of distribution granted by the American corporation Eagle Picher Filtration and Minerals.

This acquisition represents Mercator’s first step towards the realization of its strategic plan aimed at integrating distribution activity to the company’s already established logistics activity.

The strategic plan was revealed by the president and CEO of Mercator during the September shareholders annual meeting.

“We are very happy with the agreement that has intervened aiming to the acquisition of Cap Canada’s assets as well as obtaining an exclusive distribution of diatomeous earth throughout Canada,” commented Jean-Pierre ApĂ©lian, president and CEO of Mercator. “It concerns two strategic transactions for our corporation allowing the establishment of a synergy between our various business activities. The addition of such a distribution network will eventually allow Mercator to strengthen its pan Canadian position of various products distribution.”

Cap Canada is a Canadian corporation specialized in distribution throughout Canada. During the fiscal year of 12 months ended on March 31, 2007, Cap Canada recorded revenue of $3,048,047.

The counterpart paid by Mercator for the acquisition of these assets is $311,500, which counterpart is payable by the issuance of 700,000 common shares of the share capital of Mercator.

Subsequently to the conclusion of the agreement with Cap Canada, Mercator has concluded a distribution agreement with Eagle Picher. This agreement aims to the exclusive supply of diatomeous earth (a granular absorbent used to absorb oil spills) of Eagle Picher for the Canadian territory for the next five years.

The conclusion of the final agreement relative to the acquisition is planned for January 2008.

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