Canadian Public Venture Finance I Inc.
TSX VENTURE : NNN.P

September 13, 2005 12:40 ET

Canadian Public Venture Finance I Completes Qualifying Transaction

MONTREAL, QUEBEC--(CCNMatthews - Sept. 13, 2005) -

(Not for dissemination in the United States of America)

Canadian Public Venture Finance I Inc. (TSX VENTURE:NNN.P) ("Finance I"), a Capital Pool Company (CPC) located in Montreal, Quebec, today announced the completion of its Qualifying Transaction with Extenway Solutions Inc. ("Solutions"), also of Montreal, involving the amalgamation of Solutions and Finance I to form a new company called Extenway Solutions Inc. ("Extenway").

Finance I also announced that concurrent with the completion of the Qualifying Transaction, Solutions closed its previously announced private placement of 5,126,335 subscription receipts at a price of $0.30 per subscription receipt for total proceeds of approximately $1,537,900.

Pursuant to the terms of the Qualifying Transaction, each one class A share and class B share of Solutions was exchanged for one common share of Extenway, each agent's option of Solutions was replaced with one replacement agent's option of Extenway with identical terms and each $1.00 principal amount of Solutions convertible debentures were replaced with $1.00 principal amount of replacement convertible debentures of Extenway with identical terms. Also pursuant to the terms of the Qualifying Transaction, each common share of Finance I was exchanged for one common share of Extenway, each agent's option of Finance I was replaced with one replacement agent's option of Extenway with identical terms, and each one stock option of Finance I was replaced with one replacement stock option of Extenway with identical terms.

The transaction between Finance I and Solutions constituted a Qualifying Transaction of Finance I as defined in Policy 2.4 of the TSX Venture Exchange Inc. ("TSX Venture") Corporate Finance Manual.

The completion of the Qualifying Transaction has received conditional approval of TSX Venture and is subject to its final approval, which Extenway expects to receive next week after it completes outstanding filings and fees regarding the
Qualifying Transaction.

The common shares of Extenway are expected to commence trading next week under
the symbol "EY" after TSX Venture issues its final bulletin at which time the common shares of Finance I will cease trading. The Qualifying Transaction does not result in a consolidation of the Finance I common shares.

About Extenway Solutions Inc.

Extenway (www.extenway.com) is a technology company based in Montreal, Quebec that specializes in the development of software and hardware products for the lodging industry. Extenway provides hotels with a comprehensive and interactive in-room entertainment system that offers on-demand movies, high speed Internet access and TV programming on a high-definition HDTV-compliant LCD flat-panel television. Using patent pending proprietary television and computer technologies, Extenway's products enable guests to turn the in-room television into a virtual personal computer, or PC, thereby providing them with the unique opportunity to access and work on business documents in the privacy of their room without having to carry a laptop.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. Extenway Solutions Inc. will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Extenway Solutions Inc.

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

Contact Information

  • Canadian Public Venture Finance I Inc.
    John McAllister
    President and Chief Executive Officer
    (418) 523-4474