Stoneset Equity Development Corp.
CNSX : SQC

Stoneset Equity Development Corp.

April 27, 2010 12:20 ET

Stoneset Equity Development Corp. Signs Letter of Intent to Acquire a British Columbia and Alberta Project

CALGARY, ALBERTA--(Marketwire - April 27, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Stoneset Equity (Stoneset) (CNSX:SQC) signed a letter of intent to acquire all of the outstanding shares of a private Alberta company in exchange for 35,147,082 common shares of Stoneset to be issued at a deemed price of $1.00 per share. The private company is the owner of SilverBack on Porpoise Bay, a master planned golf course community on approximately 396 acres in Sechelt, British Columbia, and the developer of the Lumiere in Mission Seniors Residences project located in Calgary, Alberta.

Mr. Tony Argento, Chairman and Chief Executive Officer of Stoneset commented: "Stoneset is very pleased to have the opportunity to acquire a company that has two outstanding development projects. SilverBack is a world class project that will expand the company's reach in B.C. while the Lumiere project will add to the company's holdings in Calgary."

SilverBack on Porpoise Bay

The SilverBack on Porpoise Bay project consists of plans for a 396 acre comprehensive development located on the east shore of Porpoise Bay between Porpoise Bay Provincial Park and the Seschelt Historical Forest, on B.C.'s Sunshine Coast. Development of SilverBack includes a hotel/lodge, 18 hole signature golf course and 1,600 living units (477 single family/duplex lots, 1,123 condominiums, 120 room lodge/hotel and 3,000 square metres of commercial/retail space). Development approval of SilverBack was granted by the District of Sechelt in May, 2008 and development and servicing agreements have now been finalized with the District of Sechelt.

Lumiere in Mission

The Lumiere project is located in the Mission area of Calgary, Alberta. The City of Calgary approved the development of 84 condominiums. A further expansion to 108 units is being contemplated.

The letter of intent contemplates Stoneset and the private company entering into a definitive agreement in respect of the share acquisition. The letter of intent is subject to customary due diligence to the satisfaction of Stoneset, as well as receipt of all necessary third party, government and regulatory consents. Including the assumption of debt, the enterprise value of the private company is estimated to be approximately $79,598,000. After debt, the net appraised value of the two properties is $35.1 million. Upon a successful closing, Stoneset will have approximately 73 million shares issued.

Cautionary Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the Acquisition. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that the Acquisition may not be completed on the terms set forth herein or at all. The statements in this news release are made as of the date of this release. Stoneset does not undertake any obligation to update such forward-looking statements except as required by applicable securities laws.

THE CNSX EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.

Contact Information

  • Stoneset Equity Development Corp.
    Tony Argento
    Chairman and Chief Executive Officer
    (403) 237-8822
    tony@stonesetgreen.com
    or
    Stoneset Equity Development Corp.
    3915-8 Street S.E.
    Calgary, Alberta T2G 3A5
    or
    The Howard Group
    Bob Beaty
    (403) 221-0915 or (888) 221-0915
    bob@howardgroupinc.com
    or
    The Howard Group
    Grant Howard
    (403) 221-0915 or (888) 221-0915