Global Development Resources, Inc.
TSX VENTURE : GDV.U

August 06, 2008 09:30 ET

Global Development Resources, Inc. Receives Shareholder Approval for the Sale of Its Subsidiary

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2008) - Global Development Resources, Inc. (TSX VENTURE:GDV.U) ("GDR") announces that it has received shareholder approval for the sale of its wholly owned subsidiary, Global Development Resources, Inc. (USA) ("GDR USA") to a company owned by current shareholders of GDR (the "Purchaser").

The sale of GDR USA was approved on August 5, 2008, by a majority of minority shareholders of GDR and by two thirds of all of the shareholders of GDR. Total proceeds from the sale will be US$9.4 million including the repayment of a note payable from GDR USA to GDR in the principal amount of US$8.9 million. The consideration payable by the Purchaser to GDR pursuant to a share purchase agreement will be comprised of 25,000,000 common shares of GDR tendered back to GDR by the Purchaser and, in addition, US$200,000 cash payable within 2 months of the closing date and an 18-month promissory note in the amount of US$1,666,235 secured by the assets in GDR USA.

Upon completion of the transaction, GDR's outstanding share capital will be reduced to 6,220,782 common shares and GDR's sole assets will be cash and the promissory note payable by the Purchaser.

Completion of the transaction remains subject to a number of conditions, including, amongst other things, regulatory approval.

CERTAIN STATEMENTS CONTAINED IN THIS PRESS RELEASE INCLUDING WORDS SUCH AS "LOOKS FORWARD", "ANTICIPATE", "COULD", "SHOULD", "EXPECT", BELIEVE", "WILL" AND SIMILAR EXPRESSIONS AND STATEMENTS RELATING TO MATTERS THAT ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.

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

Contact Information

  • Global Development Resources, Inc.
    Mr. Chris Carmichael
    CFO
    (416) 488-7760