/THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY./
Toronto Stock Exchange Symbol: COF
TORONTO, Jan. 26 /CNW/ - Coventree Inc. (TSX: COF) ("Coventree" or the
"Company") today commented further on its plans to implement an orderly wind
down of its operations.
As previously announced, in early 2008 the Ontario Securities Commission
(the "OSC") and the Investment Dealers Association of Canada (now known as the
Investment Industry Regulatory Organization of Canada ("IIROC")) acknowledged
that they were examining the Canadian asset-backed commercial paper ("ABCP")
market. Subsequently, the OSC made further public statements indicating that
it is investigating this market. As part of this investigation, the OSC
commenced an investigation into Coventree's participation in this market and
various timely disclosure issues. In response to these inquiries, the board of
directors of Coventree established a special committee (the "Special
Committee") comprised of Peter Dey and Wes Voorheis for the purpose of
overseeing Coventree's response to the OSC investigation. Coventree recently
received further inquiries from the OSC seeking information concerning
Coventree's initial public offering that was completed in November 2006.
Coventree has cooperated and intends to continue to cooperate with the OSC
investigation, under the Special Committee's supervision.
No formal proceedings have been commenced against Coventree or any of its
current or former directors or officers. Expenses relating to the Special
Committee and Coventree's continuing cooperation with the OSC investigations
will continue to be expensed as they are incurred. The Company has not accrued
any other amounts in respect of the OSC investigation. If formal proceedings
are commenced, the Company will incur additional expenses, and may be required
to pay monetary penalties or other amounts, which may be substantial. In
connection with the OSC investigation, Coventree has agreed that it would not
make any cash or other distributions to Coventree's shareholders generally
without having given at least 45 days' prior written notice to the OSC.
Consistent with its previously announced plans, the Company will reduce
its workforce as and when their services are no longer required by the Company
to meet the Company's contractual obligations or to complete an orderly wind
down of the Company. The Company has not yet taken any steps to commence
formal winding up proceedings.
This press release includes certain forward-looking statements concerning
Coventree that are not historical facts but that reflect Coventree's current
expectations regarding future results or events based on information currently
available to Coventree.
These forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions which may be substantial. Many
factors could cause actual results or events to differ materially from current
expectations that may be expressed or implied by such forward-looking
statements, including, without limitation, the results of the OSC
investigation and the various matters discussed under "Risks and
Uncertainties" contained on pages 21 to 24 of the Company's Management
Discussion and Analysis for the year ended September 30, 2008 which is
available under the Company's profile on SEDAR at www.sedar.com. Should one or
more of these risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, the Company many
not be able to effect an orderly winding up of the Company in the near future
or at all. These factors should be considered carefully and prospective
investors should not place undue reliance on the forward-looking statements.
These forward-looking statements are made as of the date of this press release
and Coventree does not intend, and does not assume any obligation, to update
or revise these forward-looking statements, except as required by law.
For further information:
For further information: Craig Armitage, The Equicom Group Inc., Tel:
(416) 815-0700 x278, Email: firstname.lastname@example.org