The Phoenician Fund Corporation I
TSX VENTURE : PO.P

October 05, 2009 09:00 ET

The Phoenician Fund Corporation I: Qualifying Transaction Update

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2009) - As previously announced on March 20, 2009, The Phoenician Fund Corporation I ("Phoenician")(TSX VENTURE:PO.P) and China Pub Company PLC ("China Pub") have reached an agreement in principle on the terms of a proposed offer (the "Proposed Offer") to be made by Phoenician for the entire issued share capital of China Pub. The Proposed Offer will be subject to the terms and conditions described therein and it is intended to constitute Phoenician's qualifying transaction within the meaning of TSX Venture Exchange ("TSX-V") Policy 2.4. Phoenician and China Pub are pleased to announce that both companies are working towards submission of the preliminary prospectus for the Proposed Offer.

In connection with the Proposed Offer, Phoenician has applied for and has been granted an extension until March 31, 2010 to complete its qualifying transaction, pursuant to the bulletins of the TSX-V dated November 3, 2008, March 6 and September 11, 2009 regarding certain temporary relief measures.

For more details regarding the Proposed Offer, please refer to Phoenician's press release dated March 20, 2009 available on SEDAR (www.sedar.com).

Services Agreement with NM Bancorp

In connection with the identification, evaluation and implementation of a qualifying transaction, Phoenician entered into a service agreement ("Service Agreement") effective December 1, 2006 with NM Bancorp Ltd. ("NM Bancorp"). Pursuant to the Service Agreement and as permitted under TSX-V Policy 2.4, until the earlier of 24 months from the date of Phoenician's initial public offering and termination of the Service Agreement according to its terms, NM Bancorp will provide certain back office support services, such as office space, supplies, equipment, related utilities and other general and administrative services to Phoenician. To date, Phoenician has paid $130,267 to NM Bancorp, which amount includes reimbursement of rental payments to a third party landlord and reimbursement of expenses incurred in the identification and evaluation of a qualifying transaction.

Completion of the transaction is subject to a number of conditions, including but not limited to, TSX-V acceptance and if applicable pursuant to TSX-V Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the prospectus to be prepared in connection with the transaction, 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-V has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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