Trading Symbol: MCV
TORONTO, June 16 /CNW/ - McVicar Resources Inc. ("McVicar") announces
that Mr. Hongjie Kang has resigned from the Board of Directors in order to
avoid any possible appearance of conflict of interest in connection with
McVicar's ongoing dealings with its 51% owned Hong Kong subsidiary, McVicar
(Hong Kong) Advanced Materials Co. Ltd., ("MAM") in which Mr. Kang has an
indirect minority interest. Mr. Kang will not stand for re-election as a
director at McVicar's upcoming annual meeting on June 25, 2008.
McVicar also announces that it has subsequently entered into an agreement
with Shining Palace Holding Co. Limited ("Shining Palace"), a British Virgin
Islands company, to acquire all of its 39.5% equity interest in MAM thereby
increasing McVicar's interest from 51% to 90.5%. McVicar will acquire the
39.5% interest for RMB 51,350,000 ($7,735,720 based on an exchange rate of
7RMB to $1) to be satisfied by the issue of 5,329,800 units at an agreed issue
price of $1.40 per unit. Each unit consists of one common share of McVicar and
one-half of one common share purchase warrant, each whole warrant entitling
the holder to acquire one additional McVicar share for a period of 24 months
from the date of closing of the acquisition.
Completion of the acquisition of the 39.5% equity interest in MAM is
conditional upon Shining Palace simultaneously distributing all of the
5,324,800 units of McVicar to the shareholders of Shining Palace in proportion
to their respective shareholdings.
Completion of the transaction is also subject to all necessary regulatory
The transaction announced June 4, 2008 concerning McVicar's interest in
MAM has been terminated.
McVicar is a Canadian company with operations in China, mainly focusing
on the specialty chemicals. McVicar holds through MAM three subsidiaries
located in the east coast of China: Hongbo Chemical Co. Ltd. ("Hongbo"),
Changlong Chemical Ltd. ("Changlong") and Luyuan Chemical Co. Ltd. ("Luyuan").
Hongbo is a developer, manufacturer and supplier of specialty chemical
products used in the personal care, pharmaceutical and industrial chemical
markets. Hongbo's customers include major international and Chinese chemical
companies. The company has recently received a series of orders from
international companies. Changlong is a developer, manufacturer and supplier
of specialty chemical products used in the pharmaceutical industry. The
company possesses the technologies of chemical synthesizing under high
pressure. Its customers are mainly Chinese pharmaceutical companies. Luyuan
produces chemicals that are key supplies to products that Hongbo provides for
This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Expectations are based on
reasonable assumptions and the company can give no assurance that expectations
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Ms. eXavier Peterson at: 55 University Avenue,
Suite 605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421,