Sagittarius Capital Corporation

April 07, 2010 14:10 ET

Sagittarius Capital Corporation Announces Termination of Qualifying Transaction With Tianjin City Tian Yi Seamless Steel Tube Manufacturing Co., Ltd.

TORONTO, ONTARIO--(Marketwire - April 7, 2010) - Sagittarius Capital Corporation ("Sagittarius" or the "Company") (TSX VENTURE:SCX.P), a capital pool company, today announced that its proposed acquisition of Tianjin City Tian Yi Seamless Steel Tube Manufacturing Co., Ltd ("Seamless") has been terminated by Seamless effective immediately.

On September 22, 2009, the Company announced that it entered into a letter of intent with Seamless pursuant to which it intended to acquire indirectly all of the issued and outstanding shares of Seamless. The transaction was intended to constitute the Company's qualifying transaction under the policies of the TSX Venture Exchange. Closing was subject to a number of conditions including, but not limited to, regulatory approval, due diligence, completion of a corporate reorganization by Seamless, audited financial statements, and the completion of necessary legal documentation.

On April 6, 2010, the Company received a notice from Seamless terminating the proposed transaction effectively immediately. While Seamless cited the reason for the termination as the failure to negotiate, execute and deliver a formal agreement on or before November 30, 2009, the Company believes that Seamless was solely responsible for such delay.

Management is in the process of considering possible legal action against Seamless, its advisor Thornhill Capital LLC and their respective directors and officers. The Company is also considering currently available alternative qualifying transactions and will be making further announcements as to their efforts as soon as practically possible.

As the deadline for the Company to complete its qualifying transaction expired on March 31, 2010, the Company will likely be required to transfer its listing from the TSX Venture Exchange to the NEX board of the TSX Venture Exchange. Accordingly, a shareholders' meeting has been scheduled for May 28, 2010 to authorize, among other things, the transfer of the Company's listing to the NEX board of the TSX Venture Exchange.

The management of the company, who take full responsibility for its content, prepared this press release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements relating to future events and results that are based on current expectations. These statements involve risks and uncertainties. Consequently, actual events and results in future periods may differ materially from those currently expected.

Contact Information

  • Sagittarius Capital Corporation
    Robin Sundstrom
    Chief Executive Officer