February 27, 2008 09:16 ET

Ceapro Announces Interim Ruling in Saskatchewan Government Growth Fund Case

EDMONTON, ALBERTA--(Marketwire - Feb. 27, 2008) - Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the Company") announced today that Mr. Justice Popescul, the presiding Justice in the Company's claim against Saskatchewan Government Growth Fund Ltd. ("SGGF Ltd.") and others, issued a written decision on February 19, 2008 with respect to non-suit applications made by all defendants.

The Company commenced legal proceedings against SGGF Ltd. and the other defendants in 1998 claiming that they improperly deprived Ceapro of its investment in Canamino Inc. ("Canamino"), a wholly-owned subsidiary of the Company at that time. The claim alleges that Ceapro has suffered damages in the amount of its loss of investment in Canamino as well as other losses. The trial of the matter commenced on November 19, 2007.

After Ceapro entered its case, all defendants brought non-suit applications to dismiss all of the various causes of actions advanced against them. Mr. Justice Popescul held that the conspiracy claim alleged against all Defendants had not been made out. Thus, that aspect of the claim stands dismissed in its entirety. He granted the applications of the Government of Saskatchewan, Janice MacKinnon, Can-Oat Milling Products Inc. and Gary K. Benson in their entirety and therefore the cases against them were dismissed. The defendants', SGGF Ltd. and Saskatchewan Government Growth Fund Management Corporation ("SGGF Management"), applications with respect to all other causes of actions advanced by Ceapro failed and therefore they remain the defendants against whom the trial of the action continues. Mr. Justice Popescul determined that all matters of costs were best left to be dealt with after final judgment was rendered.

Because of the financial assistance and other support Ceapro has received and continues to receive from parties with pre-existing commercial relations with Ceapro including shareholders, the immediate financial impact of this decision on Ceapro is considered by management to be minimal and manageable. Ceapro seeks and looks forward to obtaining a judgment on all of its remaining claims after a full trial and argument on all available issues.

About Ceapro Inc.

Ceapro Technology Inc., Ceapro Veterinary Products Inc., Ceapro Active Ingredients Inc. and Ceapro Bioenergy Inc. are wholly owned subsidiaries of Ceapro Inc., which is a Canadian growth-stage biotechnology company. Our primary business activities relate to the development and commercialization of organic products for medical, cosmetic and animal health industries using proprietary technology and natural, renewable resources. We will be applying our technology to become an active participant in the bioenergy sector. We have also introduced health and wellness services employing our CeaProve® diagnostic technology. Ceapro shares trade on the Canadian TSX Venture Exchange under the symbol CZO. To learn more about Ceapro, visit www.ceapro.com .

This release may contain forward-looking statements. Various factors could cause actual results to differ materially from those projected in forward-looking statements. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

The TSX Venture has neither approved nor disapproved of the information contained herein.

Contact Information

  • Ceapro Inc.
    Dr.Mark Redmond
    President and CEO
    Telephone (Edmonton): 780-421-4555
    Sun International Communications
    Nicole Blanchard, B.Sc., B.Comm.
    Managing Partner
    Telephone (Montreal): 450-627-6600