NEX Symbol: COF.H
TORONTO, Jan. 4, 2012 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree"
or the "Company") announced today that, on December 31, 2011, it repaid
in full the limited recourse debentures in the amount of approximately
$3.2 million (including interest) that matured on that date. The
proceeds from the initial issuance of these debentures in 2004 were
loaned by Coventree to a company owned by Geoffrey Cornish and to two
companies owned by Dean Tai. Mr. Cornish is a director and current CEO
of Coventree, Mr. Tai is a former director and CEO of Coventree, and
each of them currently owns or controls, directly or indirectly,
approximately 25% of the outstanding shares of Coventree.
Those loans are evidenced by separate promissory notes and secured by
pledges of an aggregate of one million common shares of Coventree that
are owned by the companies owned by Messrs Cornish and Tai. These
promissory notes also matured on December 31, 2011.
Coventree has agreed to extend until March 31, 2012 the maturity date
for the loan owing by Mr. Cornish's company. No extensions have been
granted in respect of the loans owed by Mr. Tai's companies and these
loans are now in default. The aggregate amount of the loans owed to
Coventree by Mr. Tai's companies was approximately $1.62 million at
December 31, 2011, and the aggregate amount of the loan owed to
Coventree by Mr. Cornish's company was $1.55 million at that same date.
Coventree intends to take appropriate steps to recover the amounts owing
by Mr. Tai's companies including, if necessary, realizing on its
This press release is intended for distribution in Canada only.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Coventree Inc.
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