Leitrim Group Inc.

May 26, 2006 16:08 ET

Leitrim Completes $2,548,000 Offering and the Acquisition of Savers Plus GTA Inc. and Magnum Fine Commercial Printing Limited

TORONTO, ONTARIO--(CCNMatthews - May 26, 2006) - Leitrim Group Inc. (the "Corporation" or "Leitrim") (TSX VENTURE:LTM.H), a capital pool company, is pleased to announce that it has completed the acquisition of all of the issued and outstanding shares of Savers Plus GTA Inc. ("Savers") and Magnum Fine Commercial Printing Limited ("Magnum") as the Corporation's Qualifying Transaction (the "Acquisition") and has also concurrently completed the prospectus offering of 16,986,666 Units for aggregate gross proceeds of $2,548,000. Each Unit consists of one common share in the share capital of Leitrim ("Leitrim Share") and one half of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one Leitrim Share at an exercise price of $0.30 until twelve months from the Closing Date. Octagon Capital Corporation acted as agent for the offering.

With respect to the acquisition of Savers and Magnum, Leitrim issued 15,000,000 Leitrim Shares to the Savers shareholders and 6,000,000 Leitrim Shares to the Magnum shareholder. In connection with the Acquisition in accordance with TSX Venture Exchange (the "Exchange") policies, a total of 17,709,615 further Leitrim Shares issued to principals and their associates have been placed in escrow and a further 1,450,000 Leitrim Shares have been legended so that 10% are tradeable upon issuance of the final Exchange bulletin approving the Acquisition and then as to 15% on the next six following six-month anniversaries of the completion of the Acquisition. Leitrim now has 41,186,666 Leitrim Shares issued and outstanding (on a non-diluted basis). Of these Leitrim Shares, David Lucatch holds, directly and indirectly, 9,751,753 Leitrim Shares (23.6%) and Jana Lucatch holds, directly and indirectly, 6,000,000 Leitrim Shares (14.6%). David Lucatch and Jana Lucatch are spouses of each other.

Final approval of the Acquisition by the Exchange and trading on the Exchange is subject to the Corporation fulfilling all of the requirements of the Exchange. It is expected that the Leitrim Shares will commence trading on the Exchange within the next ten days.

Further particulars of the transaction may be found on www.sedar.com and more specifically in the final prospectus of the Corporation dated February 22, 2006.

Changes in Management

Leitrim is also pleased to announce the appointment of two new executive officers. Mr. David Lucatch, the current President and Chief Executive Officer of Savers, has been appointed as Leitrim's Chief Executive Officer. Mr. Lucatch replaces Mr. John A. Roberts who was serving as President and Interim Chief Executive Officer of Leitrim until the Acquisition was completed. Mr. Mark H. Wiseman has been appointed the Chief Financial Officer of the Corporation. Mr. Wiseman will replace Mr. Girvan L. Patterson as the Corporation's Chief Financial Officer. A brief biography for each of the two new executive officers is set out below:

David M. Lucatch - Chief Executive Officer and Director

Mr. Lucatch has been the President of Savers from 2003 to the present. He was the President of Enhanced Customer Acquisitions Systems Inc. from July 2000 to December 2004 and the President and Chief Executive Officer of Valu-net International Limited from 1996 to 2000. Mr. Lucatch graduated in 1985 from the University of Toronto with a Bachelor of Arts degree.

Mr. Lucatch has spent over 20 years developing business concepts and taking them to market. He has spent 5 years as the President and then Chief Executive Officer of a publicly traded company.

Mark H. Wiseman, CA - Chief Financial Officer

Mr. Wiseman has been Chief Financial Officer of Savers since August 2005. Mr. Wiseman was the founding partner of (and has been with) Wiseman & Wolanski, Chartered Accountants, from 1993 to December 2004. Mr. Wiseman graduated from McGill University in 1976 with a Bachelor of Science degree. Mr. Wiseman became a Chartered Accountant in Ontario in 1979 and Alberta in 1993.

Mr. Wiseman has been a practicing Chartered Accountant for the past 25 years and has served as the auditor of both private and public firms. Mr. Wiseman has worked with early stage companies and large multi-national operations assisting in the development of financial reporting procedures and business development.

Changes to the Board of Directors

In addition to the change in executive officers, Leitrim also had changes to its board of directors. Messrs. John A. Roberts, Robert Broomfield and Stephen Mlot resigned as directors of the Corporation concurrent with the closing of the Qualifying Transaction and Messrs. David Lucatch, Frederick Turack, Brian E. Novak and Greg Cumiskey were appointed as directors of the Corporation. Therefore, the board of directors of Leitrim now consists of David Lucatch, Frederick Turack, Brian E. Novak, Greg Cumiskey, Brian Penney and Girvan Patterson. The board of directors would like to thank John A. Roberts, Robert Broomfield and Stephen Mlot for their time and dedication to Leitrim over the years.

Eventually, it is expected that Leitrim will, subject to receipt of the necessary shareholder and regulatory approvals, change the name of Leitrim to "Savers Plus International Inc."

Investors are cautioned that, except as disclosed in prospectus dated February 22, 2006, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Leitrim Group Inc.
    David Lucatch
    Chief Executive Officer