FTE Forterra Environmental Corp.

PUSLINCH, ON, July 19, 2011 /CNW/ -- PUSLINCH, ON, July 19, 2011 /CNW/ - At the request of the TSX Venture Exchange (TSXV), Forterra Environmental Corp. (Forterra or the company) (TSXV: FTE), a manufacturer, marketer, and seller of organic soil amendment products based on worm castings, today issued a statement regarding the status of the company's bank account. On June 10, 2010, Forterra issued a news release disclosing that on June 4, 2010, the Canada Revenue Agency (CRA) had seized the company's bank account as the result of the company's failure to make required tax source deductions and remittances. Forterra is continuing to discuss with CRA the company's outstanding liability regarding the payment of source deductions.  As reported in Forterra's Management Discussion and Analysis for the 2011 first quarter, filed on SEDAR, the company is continuing to operate without banking facilities.  Forterra's Directors have chosen to support the business through personal financial resources resulting in significant loans outstanding to shareholders, as reported on the balance sheet, and increased financing through debentures. On May 17, 2011, Forterra announced that it has entered into an agreement to merge with OSM Solar Corp. (OSM).  The transaction would constitute a reverse takeover (RTO) pursuant to the policies of the TSXV.  If the RTO is approved by shareholders, Forterra will become part of OSM's business enterprise and will bank accordingly.  Since OSM will assume the liabilities of Forterra, CCRA matters that may be still outstanding, if any, will be paid as agreed or retired on closing of the transaction.  This ensures that Forterra is free to seek any banking arrangements it deems appropriate outside of the OSM relationship should management deem that appropriate.  Forterra will provide additional information in the Information Circular for the proposed RTO transaction, which it expects will be provided to the TSXV for review within the next four-to-six weeks. About Forterra Environmental Corp. Forterra manufactures, markets, and sells environmentally friendly organic soil amendment products based on worm castings, which boost fertility while restoring the soil with organic matter for sustainable, longer-term benefits, including stronger root growth, and drought and pest resistance.  Forterra products contain only organic material.  They are ideal for golf courses, sports fields, lawn care, parks, nurseries, orchards, and vineyards.  Essentially, Forterra uses red wriggler worms to convert organic material into vermicompost or worm castings.  Worm castings contain micronutrients, which are required for healthy plant development.  Worm castings also contain microbes, which increase the rate at which plants take up available macronutrients and micronutrients.  Further information is available on the company's website at www.forterra.com. Forward-Looking Statements This news release contains forward-looking statements based on current expectations.  These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements.  Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements.  These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity, the ability to sign contracts with customers, the development of markets for worm castings, its ability to breed and maintain a sufficiently large worm population, and regulatory requirements.  Risks and uncertainties about Forterra's business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada.  Forterra assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements. Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Neither the TSX Venture Exchange nor its Regulation Services Provider has passed upon the merits of the proposed RTO transaction.  A definitive agreement between Forterra and OSM for the proposed RTO has not been signed.  There can be no assurance that a definite agreement will be signed or that, if signed, the proposed RTO will be completed.  Following the signing of the definitive agreement, Forterra will issue a news release providing further details of the proposed RTO.  Subsequently, Forterra will issue a Management Information Circular with respect to the required Annual and Special Meeting of Shareholders that will be called to consider the proposed transaction. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/19/c6257.html p Investor and Media Relationsbr/ Richard W. Wertheimbr/ Wertheim + Company Inc.br/ Email: a href="mailto:wertheim@wertheim.ca"wertheim@wertheim.ca/abr/ Phone : 416-594-1600br/ Cell : 416-518-8479br/ orbr/ Don Greenbr/ Chairman & Chief Executive Officerbr/ Phone: 905-634-8647br/ Email: a href="mailto:dmgreen@allstream.net"dmgreen@allstream.net/a /p

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