SOURCE: Canadian Blue Gold Inc.

March 03, 2008 10:39 ET

Canadian Blue Gold Discloses Details of Merger/Takeover by Boreal Water Collection Inc.

Boreal Water Collection -- Mrs. Francine Lavoie Statement to Shareholders

MONTREAL--(Marketwire - March 3, 2008) - Canadian Blue Gold Inc. (PINKSHEETS: CBGC) today disclosed details of the Merger/Takeover by Boreal Water Collection Inc.

Details on the acquisition of control by 3090-8925 Quebec Inc.

On December 17, 2007 Mrs. Francine Lavoie, controlling shareholder of Les Sources Saint-Élie Inc., acquired effective control of Canadian Blue Gold Inc. (now renamed Boreal Water Collection Inc.) through the purchase of all the common shares then owned by Mr. Allain Barrière, former President of Canadian Blue Gold Inc., and a few other shareholders that collectively represented majority control of the Company.

In the Agreement, past management was responsible for Canadian Blue Gold Inc. being exempt of past or contingent liabilities, if any and the agreement was signed with majority shareholders consent on December, 17, 2007. As part of the agreement the following actions had to be performed:

  1)  Past management was responsible for the reduction of total shares
      outstanding from 309,111,957 shares to 1,030,373 shares (300 X 1).
  2)  Past management had to effectuate closing of Company's financial
      statements as of December 31, 2007 and delivery of the company in
      good standing and debt free.
  3)  Past management has to deliver the purchased shares representing a
      control block of approximately 65% to the buyer.
  4)  Past management had to file all requisite documents for CUSIP,
      corporate name and symbol change. All former officers and directors
      are resigning from the Board of Directors, including Mr. Allain
      Barrière.
  5)  Past management had to obtain majority voting consent relative to the
      issuance of 22 million restricted shares (post-split) to 3090-8925
      Quebec Inc. in relation with the granting by 3090-8925 Quebec Inc.
      and Les Sources Saint-Élie Inc. of an exclusive business development
      and distribution licence for the US territory.

All the previous Canadian Blue Gold business activities have been discontinued or suspended. Boreal Water Collection will evaluate the assets and business agreements made by previous management and decide which activities it may retain or pursue as part of its business plan.

Subsequent to the above, a total of 23,030,373 common shares shall be issued and outstanding.

Boreal Water Collection also filed an amendment in the State of Nevada for the company's authorized common share capital to be reduced to 100,000,000 common shares.

Boreal Water Collection Operational Plan

The new management plan is to build Boreal Water Collection into a leading producer of high-end, private label and promotional item bottled water in North America, building on Les Sources Saint-Élie Inc. experience and network, with new high-level and experienced management team and sales forces.

Boreal Water Collection shall be well capitalised and have access to the appropriate capital resources to develop its US initiative in a timely manner. To that effect, Boreal Water Collection has already received investment term sheet and commitments from equity and/or loans from private equity firms, private investors and financial institutions, giving Boreal Water Collection sufficient flexibility to consider the appropriate options.

Boreal Water Collection has provided for the allocation of approximately 10,000,000 shares with a view to capitalize and provide for the operating and development effort related to the expansion of its operations in the United States, including the acquisition of water spring assets and/or bottling plants, and cover overall operating and marketing expenses. Such shares will only be issued for financial considerations if, as and when needed in the normal course of business, the company proceeding with the placement of shares with private equity firms or other accredited investors.

The new management plan is also to take the necessary steps for the company to become voluntarily reporting issuer and also, as and when justified, to seek listing on a larger recognized stock exchange.

Once trading under its new name and symbol, the company will communicate names of new officers and directors as well as a comprehensive description of its operation, sales and development plan

Finally, Boreal Water Collection CEO Mrs. Francine Lavoie issued the following statement to all past, current and future shareholders:

"Boreal Water Collection relation with Les Sources Saint-Élie Inc. shall result in Boreal Water Collection generating revenues by leveraging on Les Sources Saint-Élie Inc. experience and network and presence in the market and the existence of pending business development agreements in the United States. My vision is to build Boreal Water Collection as a prominent leading producer of high-end, private label and promotional item bottled water in North America and build shareholder value.

"Boreal Water Collection cannot be considered a start-up given its association with Les Sources Saint-Élie Inc., a profitable and well-managed corporation. The quality and reputation of renowned international partners joining forces with Boreal in several ventures will be a testament to our rapid growth and an endorsement of our success and commitment to delivering wealth and value to our shareholders.

"Finally, I would like to explicitly state that Boreal Water Collection Inc. and its new management are not affiliated nor related in any way with past operations, activities or management of the Corporation. Past management had the responsibility of delivering to Boreal Water Collection a clean, debt-free Corporation. We have acquired this control position in the company now renamed Boreal Water Collection Inc. with the purpose of building our US initiative and establish our US assets and operations through a public company, supported by an initial shareholder base sharing an awareness and interest in the water products distribution business."

About Boreal Water Collection Inc.

Boreal Water Collection's goal is to become the leading producer of high-end, private label bottled water in North America. Boreal plans to achieve this goal by developing its affiliation with Les Sources Saint-Élie Inc., a Canadian company that has been the leading producer of high-end, private label bottled water in Eastern Canada over the last decade. Boreal is committed to providing its customers with the highest quality, private label bottled water products at affordable prices, supported by a wide range of products and an outstanding level of customer service. Its product line, which features various labels, shapes and sizes of water bottles, is the most impressive in the market. In today's health-conscious society, private label bottled water is an effective and highly desirable vehicle to promote businesses. Because Boreal provides a turnkey project, it is able to offer its service to almost every type of corporate customer.

Production Facilities -- Boreal Water Collection plans to develop a national network of bottled water production facilities through an aggressive acquisition program and via selective joint ventures.

Distribution network -- Boreal Water Collection, with its acquired know-how and its exclusive product offering, will expand by selling distribution licenses to selected well-established distributors, in addition to developing its own national corporate accounts.

About Saint-Élie

Les Sources Saint-Élie Inc. is a leading producer of high-end, private label bottled water in Eastern Canada. Saint-Élie offers a variety of bottle sizes: 18.9L, 11L, 4L, 1.5L, 1L, 500ml, and 410ml. From a concept right through to the application, Saint-Élie can assist your company in attaching its name to its naturally pure and healthy product. Saint-Élie water is naturally filtered for over 60 years through a very hard natural crystalline rock shield, hence giving it a superior level of purity and taste.

Les Sources Saint-Élie Inc. was honoured with the prestigious "Superior Taste Award 2007" for its quality and superior taste of its certified natural spring water. This international recognition is given by the International Taste and Quality Institute, a Belgium organisation of Europe's leading chefs and sommeliers dedicated to judging and honouring superior tasting food and beverages. Products are evaluated by panels of renowned European Chefs and Sommeliers, members of the 11 most prestigious European culinary organizations such as the Maitres Cuisiniers de France, Academia Espanola de Gastronomia, Federazione Italiana Cuochi, Verband der Koche Deutschlands, Maitre Cuisiniers de Belgique, and Association de la Sommellerie Internationale. The blind test centered around five criteria: visual aspect, aroma, taste, texture and overall assessment.

For more information on Canadian Blue Gold, please visit the Company corporate Web site at www.borealwater.com and/or www.saintelie.com and/or contact Canadian Blue Gold's Investor Relations firm Equiti-trend Advisors. Representatives are available on market days from 9:30 a.m. to 5:30 p.m. EST by calling (800) 953-3350.

Forward-Looking Statements

Please be advised that statements made herein, other than historical data, constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, potential volatility in the company's stock price, increased competition, customer acceptance of new products and services offered by the company, and uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. Please also be advised that the company's stock is not currently registered with the Securities and Exchange Commission.

Contact Information

  • Contact:

    Equiti-trend Advisors LLC
    (800) 953-3350 U.S. and Canada
    (858) 436-3350 Local