Cypress Hills Resource Corp.

Cypress Hills Resource Corp.

July 24, 2009 13:09 ET

Cypress Hills Resource Corp. Receives Shareholder Approval to Share Consolidation, Reduction of Stated Capital and Private Placement

CALGARY, ALBERTA--(Marketwire - July 24, 2009) - Cypress Hills Resource Corp. ("Cypress") (TSX VENTURE:CHS) announces that it has today received shareholder approval to consolidate its common shares on the basis one new post-consolidation common share for up to every ten issued and outstanding common shares pre-consolidation, or such lesser number of common shares as may be approved by the Board of Directors. Cypress shareholders also approved the reduction of stated capital of Cypress by an amount of $19,204,925 and correspondingly reducing the accumulated deficit of Cypress and approved a private placement of common shares of Cypress and/or settlement of debt with common shares of Cypress whereby Mr. Ted J. Fostey, President and Chief Executive Officer of Cypress, or his wholly-owned company, JDL Capital Canada Ltd., becomes a control person of Cypress. Cypress will not be changing its name in connection with the common share consolidation.

It is the view of the Board of Directors that a consolidation of the common shares of Cypress is necessary for any further equity financings and to facilitate attracting new investment in Cypress. The common share consolidation and any private placement by Cypress is subject to regulatory approval, including the approval of the TSX Venture Exchange.

Cypress currently has 3,054,373 common shares outstanding and such number of shares will be reduced in accordance with the consolidation ratio determined by the Board of Directors.

Neither 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.

Contact Information

  • Cypress Hills Resource Corp.
    Ted J. Fostey
    President and Chief Executive Officer
    (403) 265-7663