July 21, 2008 18:21 ET

Argus Corporation Limited: Update on Cease Trade Order to be Issued by Canadian Securities Regulators

TORONTO, ONTARIO--(Marketwire - July 21, 2008) - Argus Corporation Limited (the "Company") (TSX:AR.PR.A)(TSX:AR.PR.D)(TSX:AR.PR.B) by its receiver and manager, interim receiver and monitor, RSM Richter Inc., (collectively the "Receiver") announced today that the Ontario Superior Court of Justice (Commercial List) ( the "Court") issued an order authorizing the Receiver, on behalf of Argus, to consent to a cease trade order (the "Argus CTO") to be issued by the Ontario Securities Commission (the "OSC"). The date upon which the Argus CTO will be issued has not yet been determined.

The Argus CTO will apply to all securities of the Company but will contain carve-outs to permit trades in the Company's securities that are made: (i) in connection with the Company's Companies' Creditors Arrangement Act (Canada) proceedings or receivership proceedings and as approved by the Court; (ii) for nominal consideration for the purpose of permitting a holder to crystallize a tax loss; or (iii) by or to an entity that qualifies as an "accredited investor" as that term is defined under applicable Canadian securities laws. Provided that with respect to (ii) and (iii) a copy of the Argus CTO is provided and the seller receives an acknowledgment that the Argus securities remain subject to the Argus CTO.

The Receiver is to maintain a transfer registry for exempt trades until January 31, 2010, which is to be funded from the Argus estate account maintained by the Receiver.

The Company has also been advised by the Toronto Stock Exchange (the "TSX") that, provided the Argus CTO is granted, the TSX will initiate a process that will lead to the delisting of the Company's Class A Preference Shares Series $2.50, Class A Preference Shares Series $2.60 and Cumulative Class B Preference Shares Series 1962 from the TSX following the issuance of the Argus CTO.

The Argus CTO is being issued as a result of the Company's failure to (i) file audited annual financial statements, and other financial information for years ended December 31, 2005, 2006, and 2007; (ii) interim financial statements for the fiscal periods ended March 31 and June 30, 2008; and (iii) comply with other regulatory requirements. The Receiver also announced that in the interests of reducing costs for the benefit of its stakeholders, it would be discontinuing the preparation and filing on a bi-weekly basis the status reports required under the terms of the Management Cease Trade Order issued on June 1, 2004 by the OSC.

This media release contains forward- looking information. The words "anticipates", "believes", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedules", "should", "will", "would", and similar expressions are often intended to identify forward-looking information, although not all forward- looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on information currently available to the Company's management. The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from results anticipated by the forward-looking information. The factors which could cause results or events to differ from current expectations include, but are not limited to: outcome of litigation, the CCAA process, regulatory and other proceedings; the actions of Canadian securities regulators in response to the Company going into default under its continuous disclosure obligations; and other factors, many of which are beyond the control of the Company. For additional information which respect to the Company's risk factors, reference should be made to the Company's continuous disclosure materials filed with Canadian securities regulatory authorities.

All forward-looking information in this media release is qualified in its entirety by the above cautionary statements and, except as require by law, the Company undertakes no obligation to revise or update any forward looking information as a result of new information, future events or otherwise.


Media Contact:

Robert (Bobby) Kofman

RMS Richter Inc.,
in its capacity as receiver and manager,
interim receiver and monitor of
Argus Corporation Limited
(416) 932-6228

Contact Information

  • Media Contact:
    RMS Richter Inc.
    Robert (Bobby) Kofman, Vice-President
    (416) 932-6228