SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): May 4, 1999
THE TIREX CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 33-17598-NY 22-2824362
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
740 St. Maurice, Suite 201
Montreal, Quebec H3C 1L5
(Address of principal executive offices) (Zip Code)
(514) 878-0727
(Registrant's telephone number, including area
code) (Former name, former address and former fiscal year, if
changed since last report)
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ITEM 5. Other Events
On May 4, 1999, the Company issued the following press release:
FOR IMMEDIATE RELEASE
Contact: John L. Threshie, Jr.
The Tirex Corporation
(OTC BULLETIN
BOARD - "TXMC")
Tel: (514) 933-2518
Fax: (514) 933-6368
TIREX ACQUISITION OF ENVIROMAX CANCELLED
TIREX INSTALLS ITS OWN MOLDING FACILITY AT GREATLY REDUCED COST
MONTREAL, CANADA, May 4, 1999 -- The Tirex Corporation (OTC BULLETIN
BOARD - "TXMC") announced today that, due to seemingly irresolvable differences
between the parties, negotiations for Tirex's acquisition of 80.6% of Les
Caoutchoucs Enviromax Inc. a/k/a Enviromax Rubber Inc., a Montreal manufacturer
of molded rubber products broke down this month and the planned acquisition has
been cancelled. Terence C. Byrne, Tirex's Chairman and CEO, said that this turn
of events has proven to be extremely positive for Tirex because it has been able
to establish its own rubber products molding facility at a greatly reduced cost.
In connection therewith, Tirex has retained its own highly experienced molding
operations management team, consisting of a production manager, chemical
engineer, and chief mechanic. Mr. Byrne went on to say that Tirex's molding
facility, 80% of which has already been installed at its 90,000 square foot
facility in Montreal, gives Tirex at least double its present production
capacity requirements and that Tirex will be able to expand such capacity as
required on much more economical terms than would have been called for by the
Enviromax acquisition. Completion of equipment installation is expected to occur
this week.
The proposed acquisition would have cost Tirex more than $1,000,350 in
the combined assumption of approximately $778,000 in debt presently owed by
Enviromax and a purchase price of more than $390,000, consisting of $130,000 in
cash, approximately $32,500 in a 30-day promissory note, and approximately
$227,500 in convertible debentures bearing interest at 3% over prime rate.
Mr. Byrne stated that, given the expertise and knowledge of Tirex's new
molding operations staff, the space available to it at its own facility, and the
market prices for the required
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equipment and supplies, he is confident that, at any time that it wishes to,
Tirex will be able to duplicate all of the rubber molding production
capabilities of Enviromax, including various production technologies,
vulcanization, plastic/rubber compound molding, and other molding operations
using various binding products. Mr. Byrne further expressed the view that this
could be accomplished at substantially lower costs than would have been required
in the Enviromax acquisition.
ITEM 7. EXHIBITS
No Exhibits are being filed with this Report.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE TIREX CORPORATION
Dated: May 18, 1999 By /s/ Terence C. Byrne
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Terence C. Byrne, Chairman and
Chief Executive Officer
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