General Donlee Canada Inc. Announces Record Date for Stock Split

TORONTO, May 25, 2011 /CNW/ - General Donlee Canada Inc. ("General Donlee" or the "Company") (TSX: GDI) today announced that the record date (the "Record Date") for the proposed division of the Company's common shares on a two-for-one basis (the "Stock Split") has been set at May 31, 2011. At the close of business on the Record Date, each shareholder of record will receive one additional common share for each common share he or she holds. As the Company's common shares trade in the book-entry only system of CDS Clearing and Depository Services Inc., accounts of common shareholders of record on the Record Date will be automatically adjusted to reflect the Stock Split.

The Company's common shares will commence trading on the Toronto Stock Exchange on a split basis at the opening of business on Friday, May 27, 2011, which is the second trading day preceding the Record Date.

The Stock Split will result in an adjustment of the conversion price of the 7.0% convertible unsecured subordinated debentures due June 30, 2014. Pursuant to the terms of the indenture dated June 20, 2007, the conversion price of the debentures will be reduced in half from $13.10 to $6.55. As a result, the number of common shares issuable on the conversion of each $1000 in debentures will increase from approximately 76.336 common shares to 152.672 common shares.

General Donlee anticipates that the Stock Split will make the Company's stock more accessible to shareholders and should enhance the trading liquidity of the common shares. The Company currently has approximately 5.33 million shares outstanding which subsequent to the Stock Split will double to approximately 10.66 million shares outstanding. Future dividends will reflect the two-for-one share split. At the close of business yesterday, the price of a General Donlee common share on the Toronto Stock Exchange was $7.22.

About General Donlee Canada Inc.

General Donlee Canada Inc. is a leading diversified manufacturer of precision-machined products for the military, commercial and general aerospace industries, and a specialist in the manufacture of precision-machined products for the industrial products and power generation industries. General Donlee's operating strategy focuses on targeting niche markets for products that are aligned with its sophisticated manufacturing capabilities and skilled workforce.

Forward Looking Statements

Certain forward-looking statements contained in this news release are based on information, currently available to management, but are subject to a number of uncertainties and risks that could cause actual results to differ materially from the results discussed in the forward-looking statements. Further information can be found in the disclosure documents filed by General Donlee Canada Inc. with the securities regulatory authorities, available at www.sedar.com or through the Company's website at www.generaldonlee.com.

SOURCE General Donlee Canada Inc.

For further information:

Garen Mikirditsian, Chief Financial Officer
Telephone: (416) 743-4417
E-mail:  info@donleeprecision.com
Web site: www.generaldonlee.com

Profil de l'entreprise

General Donlee Canada Inc.

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