Brainhunter Inc.

Brainhunter Inc.

June 01, 2009 15:04 ET

Brainhunter Provides Update

TORONTO, ONTARIO--(Marketwire - June 1, 2009) -


Brainhunter Inc. ("Brainhunter" or the "Company") (TSX:BH) is pleased to provide an update to its announcement of April 6, 2009.

As more fully described in the financial statements of the Company for the periods ending September 30, 2008, December 31, 2008 and March 31, 2008, the Company has entered into extension agreements ("Agreements") with its senior lenders totaling $31.0 million, whereby existing financing has been extended until September 30, 2009.

The terms of the Agreements require the Company to extend its existing term notes, and continue to pursue a course of action leading to a strategic transaction which would result in the senior lenders being repaid by September 30, 2009. Further, the terms of the Agreements require the Company to provide to the lenders a signed letter of intent from an independent party detailing a proposed transaction and to provide a final agreement by July 31, 2009, for closing prior to September 30, 2009. It is anticipated that shareholder approval will be required to finalize any proposed transaction.

As disclosed February 18, 2009, the Company retained Ernst & Young Orenda Corporate Finance ("EY Orenda") to advise the Company in the above noted course of action. The Company formed a Special Committee of the independent members of the Company's Board of Directors, to which EY Orenda reports and which is being charged with evaluating the proposals arising from this course of action.

In pursuit of that course of action, to date the Company has finalized for distribution an extensive Confidential Information Memorandum, has been in contact with approximately 70 potential Financial and Strategic candidates, has executed multiple Confidentiality Agreements with prospective candidates and has held preliminary discussions with several others.

Per the terms of the Agreements, the Company agreed to extend the subordinated convertible notes in the form of non-convertible term notes to a date later than September 30, 2009. The Company expects to complete the extension of the term notes by June 9, 2009.

Business Overview

Brainhunter is an ISO9001:2000 Certified "Staffing Services and Solutions" Company. Brainhunter's business is focused on using a leading technology platform to provide end to end recruiting and staffing services and solutions in information technology, engineering and other selected market sectors. These services are provided to clients throughout Canada, United States, and globally under the Brand "Brainhunter".

Brainhunter's technology platform and best practices strive to deliver the most cost effective and flexible recruiting and staffing services and solutions in the marketplace today. The solutions are modular in nature and customizable to suit both small and large scale business processes. Brainhunter has over 350 active client relationships including a number of North America's leading corporations and over 30 federal and provincial government groups. Brainhunter's Jobseeker database currently holds in excess of 1.2 million professionals and is one of the largest active databases for professional staffing in North America.

Brainhunter is a publicly traded company with a senior listing on the Toronto Stock Exchange. Brainhunter deploys over 1600 consultants and has an internal staff of over 200 personnel. The Company has delivery capability across Canada (including Toronto, Ottawa, Maritimes, Montreal, Calgary, Vancouver), and in the United States, activities in Dalian China, and an office in Hyderabad India, and the UK.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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