SHERBROOKE, QC, Oct. 5 /CNW Telbec/ - Shermag Inc. (TSX: SMG) ("Shermag"
or the "Company") is pleased to announce the addition of Mr. George Armoyan to
its Board of Directors. Since the Company's by-laws do not permit the addition
of a Board member between meetings of shareholders, Shermag President and CEO,
Mr. Jeffrey K. Casselman has agreed to step down from the Board in order to
allow the addition of Mr. Armoyan. Mr. Casselman, as management's
representative to the Board, will continue to participate in the strategic
direction of the Company at the Board level.
Mr. Armoyan brings to the Shermag Board a long and successful track
record in enhancing and creating shareholder value in companies in a wide
range of industries. He is the President and CEO of Clarke Inc. (TSX: CKI), an
activist, catalyst investment company with a diversified portfolio of
strategic and opportunistic investments, which currently owns approximately
19.99% of the outstanding shares of Shermag Inc. Mr. Armoyan also serves on
the Boards of Directors of Clarke Inc., General Donlee Income Fund, Royal Host
REIT, Granby Industries Income Fund, and TerraVest Income Fund.
Mr. Claude Pichette, Chairman of the Shermag Board, said "The Company and
its shareholders will greatly benefit from George Armoyan's significant
experience, and we look forward to working with him. Mr. Casselman remains our
President and CEO and is key to the strategy of the Company going forward."
Shermag Inc. (SMG), headquartered in Sherbrooke, Québec, is a leader in
the design, production, marketing and distribution of high-quality residential
furniture. The Company employs approximately 1,100 people and is a vertically
integrated manufacturer and importer with its own cutting rights, sawmill,
veneer plant, manufacturing operations and global sourcing division.
This news release, in particular the section under the heading "Outlook",
contains forward-looking statements about the Company's operations,
objectives, strategies, financial situation and performance. These statements
are made based on assumptions and management's best estimates with regard to
future events. However, the business of the Company is subject to risks and
uncertainties that could cause actual results to differ from expected results.
Important factors that could cause such differences are changes in pricing
pressure being exerted by competitors, particularly Asian-based companies,
significant movement in the Canadian/US dollar exchange rate, and
unanticipated problems in implementing the Company's Business Transformation
Plan. This is not an exhaustive list. A broader discussion of risk factors
that could affect future performance can be found in the Company's Annual MD&A
and Annual Information Form, filed with Canadian securities regulatory
authorities. Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of actual
results. The Company disclaims any intention or obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
For further information:
For further information: Investor Relations: Rick Leckner, Maison
Brison, (514) 731-0000; Jeff Casselman, President and CEO, Shermag Inc., (819)