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EXHIBITION 99.1
WYANT CORPORATION LOGO
PRESS RELEASE 1/1
October 2, 2000
For immediate release
WYANT DISCOVERS POTENTIAL ACCOUNTING IRREGULARITIES
Bridgewater, NJ: October 2, 2000 - Wyant Corporation (NASDAQ Small Cap, Symbol:
WYNT) today reported that, in the course of preparing for the pending sale of
Wyant Corporation to Perkins Papers Ltd., it has discovered potential accounting
irregularities in its subsidiary located in Tennessee, IFC Disposables, Inc.
Wyant Corporation, having just discovered the potential accounting
irregularities, is currently pursuing an intensive investigation. Although the
investigation is not yet complete, it appears that the financial results of IFC
Disposables, Inc. and therefore Wyant Corporation, have been overstated in the
period of January 1, 1997 through June 30, 2000, in the amount of approximately
U.S. pre-tax $1.2 million, of which approximately U.S. pre-tax $427 thousand
relates to the period of January 1, 2000 through June 30, 2000. The potential
irregularities relate primarily to the understatement of operating costs. There
is no assurance that the amount of U.S. pre-tax $1.2 million will not change
following completion of the investigation.
As previously announced, the Company and Perkins Papers Ltd., have entered into
a definitive Agreement and Plan of Merger (the "Merger Agreement") whereby
Perkins Acquisition Corp. ("Perkins"), a wholly owned subsidiary of Perkins
Papers Ltd., has made a tender offer for all of their issued and outstanding
shares of common stock of the Company for U.S. $4.00 per share in cash, which
offer is currently scheduled to expire at 12:00 a.m. New York City time on
Thursday, October 5, 2000. Under the Merger Agreement, promptly following the
tender offer, Perkins would merge with Wyant resulting in Wyant becoming a
whollyowned subsidiary of Perkins Papers Ltd. The Company has informed Perkins
of the potential accounting irregularities.
As described in Perkins' Offer to Purchase which was filed with the Securities
and Exchange Commission on Schedule TO on September 8, 2000 and subsequently
amended on September 21, 2000 and September 25, 2000, the Merger Agreement
permits Perkins to not consummate the tender offer and the merger if certain
representations and warranties of the Company made in the Merger Agreement are
not true and correct in all material respects and have resulted in a material
adverse effect on the business or financial condition of Wyant Corporation and
its subsidiaries, taken as a whole. Wyant Corporation is not yet able to
determine whether there has been a material breach of a representation or
warranty that would result in a material adverse effect on the business or
financial condition of Wyant Corporation and its subsidiaries, taken as a whole.
However, no assurances can be given that such an event has not occurred. Perkins
has advised Wyant Corporation that it is considering the information that has
been provided to it by Wyant Corporation as well as its position under the
Merger Agreement and will respond as quickly as possible.
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Mr. Donald C. MacMartin, the Chairman of the Board and Chief Executive Officer
of Wyant stated: "We are taking the appropriate steps to address those actions.
The Company will continue to pursue aggressively the independent and internal
investigations that are underway and will take whatever further actions are
necessary based on the results of that comprehensive inquiry."
Wyant has terminated the employment of James Dykes, President of IFC
Disposables, Inc.
Wyant said it would not comment further on this matter, except to inform its
shareholders of any material information that comes to light, until the ongoing
investigation has been completed and the results presented to its Audit
Committee and Board of Directors.
Accordingly, Wyant's previously issued financial statements and auditors'
reports should not be relied upon. Revised financial statements and auditors'
reports will be issued upon completion of the investigation.
CONTACT:
M. A. D'Amour (514) 636-9926 ext. 2261 o [email protected]
D. C. MacMartin (514) 636-9926 ext. 2259 o [email protected]
Detailed corporate information and press releases can be accessed at:
www.wyantcorp.com
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1170 U.S. Highway 22 East,
Suite 203,
Bridgewater, NJ 08807
