ComWest Enterprise Corp.

October 16, 2009 14:48 ET

ComWest Announces Shareholder Approval of Consolidation and Management/Board Changes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2009) - ComWest Enterprise Corp. ("ComWest") (TSX VENTURE:CWP)(TSX VENTURE:CWP.A) is pleased to announce that its shareholders and the TSX Venture Exchange have approved the consolidation of ComWest's issued and outstanding Class A Restricted Equity Shares (Non-Voting) and Class B Common Shares (Voting).

Pursuant to a special resolution passed by shareholders on October 14, 2009, the Company has approved the consolidation of both its Class A and Class B shares on a 2500 old for 1 new basis. Holders holding less than one full share post consolidation are entitled to a cash payment of $0.04 per share of their holdings on a pre-consolidation basis in lieu of a fractional share. Following the consolidation, the Company will immediately complete a stock split on the basis of 1 old for 500 new, with fractional shares being rounded to the nearest whole number. The Consolidation and Stock Split will achieve a 5 to 1 consolidation and eliminate all of the shareholdings of less than 2500 pre-consolidation shares in exchange for the cash payment of $0.04 per share.

Effective at the opening on October 19, 2009, the Class A and Class B shares of ComWest will commence trading on the TSX Venture Exchange on a consolidated basis (five (5) old to one (1) new). The CUSIP numbers of the Company will change to CA2058923004 (Class A shares) and CA2058924093 (Class B shares); however, the name of the Company and trading symbols have not been changed.

Prior to the completion of the consolidation and split, ComWest has 5,027,504 Class A shares and 7,040,432 Class B shares outstanding. Upon completion of the consolidation/split and elimination of shareholdings of less than 2500 pre-consolidation shares, it is anticipated that there will be approximately 834,400 Class A Shares and 1,208,000 Class B Shares issued and outstanding. The exact number of shares will depend on the number of fractional shares actually eliminated on the Consolidation.

Letters of transmittal are in the process of being mailed to all registered shareholders. In order to obtain their new share certificates, each shareholder must complete and send the letter of transmittal along with their share certificates to the transfer agent, as explained in detail in the management information circular and the letter of transmittal.

Other Corporate Developments

At the Annual and Special Meeting of Shareholders held on October 14, 2009, the total number of directors was reduced from six to four with Mssrs. Bruce W. Aunger, John C. R. Cumming, Douglas F. Good and C. Michael O'Brian being re-elected as directors. The board wishes to express its gratitude to former director, Paul Brownlee who did not stand for re-election, for his past years of service as a director of ComWest.

Following the shareholders meeting, the board appointed Douglas F. Good, former CFO, as President and Bruce W. Aunger as Chief Financial Officer and Secretary. Mr. Aunger is Secretary and a Director of Glacier Media Inc. (TSX:GVC) and Executive Vice President and Chief Financial Officer of Madison Venture Corporation.

About ComWest

ComWest management has been actively identifying, conducting due diligence on and negotiating the potential acquisition of several operating businesses. Deloitte Touche LLP were engaged to assist in this process in 2008 but to date no acquisitions have been concluded.


Douglas F. Good, President

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

Contact Information

  • ComWest Enterprise Corp.
    Douglas F. Good
    604 484 6628