NEW
YORK, March 30, 2010 /PRNewswire via COMTEX/ --KHD Humboldt Wedag
International Ltd. (NYSE: KHD) announces that its shareholders approved
the first tranche distribution of 26% of the shares of KHD Humboldt
Wedag International AG ("KID"). This is the first step in the
restructuring of KHD into two distinct legal entities: (1) a mineral
royalty company, Terra Nova Royalty Corporation ("Terra Nova") and (2)
an industrial plant technology, equipment and service company, KID.
KHD has changed its name toTerra Nova.
Terra Nova will continue to be listed on the New York Stock Exchange and
trade the "regular way" under a new trading symbol TTT,with the first day of trading being on March 31, 2010.
KID will be listed on the regulated market of the Frankfurt Stock Exchange trading under trading symbol KWG.
Spin out and First Tranche Summary (KID shares)
-----------------------------------------------
-- You will receive one (1) KID share for every three and half
(3 1/2) KHD shares (calculated after a 2 for 1 forward split of KID,
which was approved on March 23, 2010).
-- Initial percentage of KID shares distributed 26%
-- Effective date March 30, 2010
-- Distribution date of shares March 31, 2010
-- Listing date for KID shares on the Frankfurt
Stock Exchange March 31, 2010
The shareholders of record who are eligible to receive
the KID shares are registered shareholders and/or DTC participants of
Terra Nova, who will need to establish a Clearstream eligible brokerage
or custodian account for the acceptance of the KID shares. There will be
no physical certificates distributed. The KID Shares will be quoted on
the Regulated Market of the Frankfurt Stock Exchange and, therefore,
will be transferable in electronic form only. As virtually all major
brokerage firms will have Clearstream eligible accounts, shareholders
whose shares of Terra Nova are registered in the name of a brokerage
firm should contact their brokerage firm for further information.
Contact
Information: Allen & Caron Inc. Rene Randall
Joseph Allen (investors) Terra Nova Royalty Corporation
1 (212) 691-8087 1 (604) 683-8286 ex 224
joe@allencaron.com rene.randall@khd.com
or
Len Hall (media)
1 (949) 474-4300
len@allencaron.com
Also, we ask you to contact our agent for the distribution:
Computershare Inc.
PO Box 43001
Providence, Rhode Island 02940-3001
USA
Contact: Lynn Huguet
Telephone: 1-877-624-5999 (toll free within North America)
or 1-781-575-4086
Fax: 1-617-360-6841
Or for any assistance call our offices in North America:
Rene Randall
Telephone: 1-604-683-8286 ex 224
Email: rrandall@bmgmt.com
It is important that all new KID shareholders realize
that there presently is a very limited or thin market for the KID shares
on the Frankfurt Stock Exchange due to the fact that the public float
of KID is approximately only 2 percent of KID's outstanding share
capital. As a result, until our shareholders claim and receive their KID
shares and a more orderly trading market develops, the trading float
will remain extremely small, trading levels will be very low or thin
and, as a result, there may be extreme volatility in quoted or trading
prices for KID shares. Until shareholders take up their KID shares and a
more orderly market develops, traded or quoted prices for KHD shares
may not be reflective of their value. We encourage you to take up your
new KID shares now.
There are several companies quoted on European markets
with similar names to our company, please make sure you are using the
trading symbol KWG to correct identify your KID shares.
With our realignment, Silke Stenger and Gerhard Rolf have
resigned from the Board of Directors of Terra Nova and joined the board
of KID. We are also pleased to announce that Ian Rigg has joined the
board of Terra Nova. Jouni Salo has resigned as President and CEO and
has joined KID as Managing Director. Michael Smith, Chairman, has been
appointed as interim President and CEO of Terra Nova.
About Terra Nova Royalty Corporation
Terra Nova Royalty Corporation owns a royalty stream on
the Wabush Iron Ore Mine in Labrador Newfoundland and is active in the
royalty industry.
Disclaimer for Forward-Looking Information
Certain statements in this release are
forward-looking statements, which reflect the expectations of management
regarding the Company's future growth, results of operations,
performance and business prospects and opportunities. The worldwide
macroeconomic downturn has resulted in production slow down less demand
for iron ore worldwide. Further, it may result in a further decrease in
the demand for our products or services. Any of these may have a
material adverse effect on our operating results and financial
condition. Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs, plans,
expectations or intentions regarding the future. No assurance can be
given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the Company
will obtain from them. These forward-looking statements reflect
management's current views and are based on certain assumptions. These
assumptions, which include management's current expectations, estimates
and assumptions about certain projects and the markets the Company
operates in, the global economic environment, interest rates, exchange
rates and our ability to attract and retain customers and to manage our
assets and operating costs, may prove to be incorrect. A number of risks
and uncertainties could cause our actual results to differ materially
from those expressed or implied by the forward-looking statements.
SOURCE KHD Humboldt Wedag International Ltd.
Communicate with management