Spinlogic Technologies inc. announces the proposed consolidation of its common shares



    MONTREAL, June 4 /CNW Telbec/ - Spinlogic Technologies Inc. ("Spinlogic"
or the "Corporation") (TSX Venture Exchange: SLO) is pleased to announce that,
at the next annual meeting, which will be held on June 29, 2007, or any
adjournment thereof (the "Meeting"), it will propose for shareholder approval
an amendment to the Corporation's articles of amalgamation to alter the
authorized capital of the Corporation by consolidating all of the issued and
outstanding common shares of the Corporation without par value on the basis of
a consolidation ratio of one post-consolidation share for every three
pre-consolidation shares.
    The number of common shares of the Corporation issued and outstanding
will thus be reduced from 58,760,765 shares as at May 17, 2007, that is to
say, the date fixed by the Corporation's Board of Directors for the purpose of
determining registered shareholders entitled to receive the Notice of Meeting
and to vote, to approximately 19,586,922 shares. In connection with the
proposed consolidation, the exercise or conversion price and/or the number of
common shares of the Corporation issuable under any of the Corporation's
outstanding convertible securities, stock options, and any other similar
outstanding securities of the Corporation, as well as the number of common
shares reserved for issuance under the Corporation's Stock Option Plan, will
be proportionately adjusted at the time of the consolidation, based on the
proposed consolidation ratio. Moreover, no fractional shares will be issued
if, as a result of the consolidation, a registered shareholder would otherwise
become entitled to a fractional share. Instead, any fractional share will be
rounded down to the nearest whole number, without monetary or other
compensation.
    To be effective, the proposed consolidation must be approved in the form
of a special resolution by not less than two-thirds of the votes cast by the
Corporation's shareholders present at the Meeting in person or by proxy, and
the applicable regulatory authorities, including the TSX Venture Exchange
Inc., must consent to the consolidation. Even if the shareholders approve the
proposed consolidation, the Board of Directors, in its sole discretion, may
revoke the special resolution, and abandon the consolidation without further
approval or action by or prior notice to shareholders. Moreover, if the
Corporation's Board of Directors does not implement the consolidation before
January 31, 2008, the authority granted by the special resolution to implement
the consolidation will lapse and be of no further force or effect.
    The Corporation's Board of Directors believes that it is in the interest
of the shareholders of the Corporation to implement the proposed share
consolidation for the following reasons:

    
    - the Board of Directors believes that the higher share price that should
      result from the consolidation could increase the Corporation's
      competitiveness and make the Corporation's common shares more
      attractive to a broader pool of potential investors;
    - the Corporation's shareholders may benefit from relatively lower
      trading costs associated with a higher share price;
    - the combination of potentially lower transaction costs and increased
      interest from investors could ultimately improve the trading liquidity
      of the Corporation's common shares; and
    - if the Corporation has fewer shares outstanding, the Corporation's
      earnings per share and changes in earnings per share will have
      increased visibility for shareholders.
    

    Following the proposed consolidation, if approved as described above, the
Corporation's corporate name will remain unchanged. However, the Corporation's
stock symbol will have to be changed.
    A more detailed description of the conditions and risks associated with
the proposed consolidation is provided in the Corporation's Management Proxy
Circular dated May 30, 2007, which is available to the public through SEDAR at
the following address: www.sedar.com.

    The TSX Venture Exchange Inc. has not approved and does not accept
    responsibility for the adequacy or accuracy of this press release.




For further information:

For further information: Paulin Lessard, Executive Vice-President and
Director, Spinlogic Technologies inc., (514) 777-3836

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SPINLOGIC TECHNOLOGIES INC.

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