Brainhunter Inc.

Brainhunter Inc.

November 10, 2008 17:23 ET

Brainhunter Actively Pursuing Privatization

Privatization Provides a Liquidity Option for Public Shareholders

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2008) -


Brainhunter Inc. ("Brainhunter" or the "Corporation")(TSX:BH) announces that it is reviewing its strategic alternatives with a view to providing a liquidity event for public shareholders. The objective is to provide public shareholders with an option to sell their shares at a better valuation than the current market.

States John McKimm, Chairman & Chief Executive Officer, "Being a public company is providing no benefit for Brainhunter or its public shareholders. The public company costs in fiscal 2008 were in excess of $2.0 million. The market capitalization is less than $10.0 million, and in today's marketplace, this valuation is not expected to enjoy any material improvement. The only way to provide better value to the shareholders in the near term is to privatize Brainhunter. The privatization process would likely require an independent valuation of the business, which management believes will be well in excess of today's market capitalization. Brainhunter's objective is to be in a position, by early spring 2009, to present public shareholders with a liquidity proposal. Discussions are underway with a number of potential investor groups, including Private Equity firms, to partner with the management team in structuring an offer to shareholders."

Mr. McKimm further states, "Brainhunter's Board of Directors approved a change in the Company's Blackout Policies to allow insiders to buy Brainhunter shares. The announcement was made Wednesday November 5, 2008. The objective is to allow insiders to acquire shares at a time when the share price needs support and the public market is showing little or no interest. Insiders and management strongly believe the valuation of Brainhunter is well in excess of current market values and are prepared to be strong buyers of the shares over the coming weeks."


Brainhunter Inc. is publicly traded on the TSX and is a leading global provider of end-to-end HCM Software, Solutions and Services (the "Offerings"). Utilizing ISO 9001/2000 technology, Best Practices and processes, Brainhunter has created Offerings that streamline the recruitment and management of permanent, contract and project based people requirements and provides real time analysis of HR metrics that improves operational decision-making and reduces cost. Brainhunter has over 250 employees and over 1,800 contract personnel with offices across Canada, a presence in select U.S. jurisdictions and offices in India, China and the U.K., servicing over 2,000 clients.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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