COUNSEL CORPORATION COMPLETES CONVERTIBLE DEBENTURE FINANCING

TORONTO, May 31, 2011 /CNW/ - Counsel Corporation (TSX: CXS) ("Counsel" or "the Company"), a private equity investor focused primarily in the financial services sector, today announced the completion of a non-brokered private placement of Convertible Unsecured Subordinated Debentures ("the Debentures") for gross proceeds of $12.0 million. The Debentures are convertible at $1.25 per common share. The Debentures bear interest at a rate of 8% per annum, payable quarterly, in cash on the last day of March, June, September and December of each year, commencing September 30, 2011 and mature on May 31, 2014.

The Company has the right to require conversion of the Debentures when the market price per common share is equal to or greater than $1.75 for 20 consecutive trading days. In addition, the Debentures will be redeemable at the option of the Company when the market price per common share is equal to or greater than $1.75 for 20 consecutive trading days.

The proceeds of the private placement will be used by Counsel to finance the acquisition of Street Capital Financial Corporation and working capital.

For further information, please visit www.sedar.com.

About Counsel Corporation
Counsel Corporation (TSX: CXS) is a private equity investor focused primarily on the financial services sector. Counsel leverages its relationships, access to capital and strategic market experience to unlock value in its investee companies. For further information, please visit Counsel's website at www.counselcorp.com.

Forward-Looking Statements
The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which Counsel currently operates, but because of the factors listed herein, as well as other factors beyond Counsel's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include the risks detailed from time to time in Counsel's securities and other regulatory filings.

SOURCE Counsel Corporation

For further information:

Counsel Corporation              The Equicom Group
Stephen Weintraub             Tim Foran
EVP, Secretary & CFO             tforan@equicomgroup.com
saw@counselcorp.com             Tel: (416) 815-0700 ext. 251
Tel: (416) 866-3058

Profil de l'entreprise

Counsel Corporation

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