Coventree Provides Update Regarding Debenture Repayment
05 January 2012 - 3:50AM
PR Newswire (Canada)
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 security. 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. Coventree Inc. CONTACT: Craig
Armitage Ani Hotoyan-JolyThe Equicom Group Inc. -or- Coventree
Inc.Tel: (416) 815-0700 x278 Tel: (416) 572-2721Email:
carmitage@equicomgroup.com Email: ani@coventree.ca
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