June 12, 2006 13:45 ET

Dawson Creek Capital Corp. Announces Letter of Intent for Qualifying Transaction and Trading Halt

CALGARY, ALBERTA--(CCNMatthews - June 12, 2006) - DAWSON CREEK CAPITAL CORP. ("Dawson Creek" or the "Corporation") (TSX VENTURE:DAW.P) is pleased to announce that it has entered into an arm's length letter of intent dated June 7, 2006 for a qualifying transaction (the "Proposed Qualifying Transaction"). The target company is a winery business located in Ontario. The letter of intent is subject to a number of conditions including the execution of a definitive agreement.

The shares of the Corporation will remain halted pending review of certain materials by the TSX Venture Exchange (the "TSX-V").

The Dawson Creek shares will be listed on the TSX-V on June 13, 2006 but will be halted pending delivery of further materials to the TSX-V. This is only an initial news release and prior to the common shares of Dawson Creek commencing trading on the TSX-V, Dawson Creek must submit certain documentation and information relating to the Proposed Qualifying Transaction to the TSX-V and issue a further comprehensive news release as required by TSX-V Policy 2.4 (the "CPC Policy").

Dawson Creek is a capital pool company subject to the CPC Policy, and it is intended that the Proposed Qualifying Transaction will constitute a Qualifying Transaction. Prior to the completion of the Proposed Qualifying Transaction, Dawson Creek must submit for review to the TSX-V a filing statement, which is required to contain full, true and plain disclosure of all material facts relating to the Proposed Qualifying Transaction. Dawson Creek will be required to include in its filing statement, prospectus level disclosure on the Proposed Qualifying Transaction.

Investors are cautioned that, except as disclosed in the filing statement of Dawson Creek to be prepared in connection with the transaction, any information released or received with respect to the Proposed Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Dawson Creek should be considered highly speculative.

Completion of the transaction is subject to a number of conditions, including but not limited to, TSX-V acceptance and if applicable pursuant to TSX-V Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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

Contact Information

  • Dawson Creek Capital Corp.
    Jeffrey A. Dawson
    President, Chief Executive Officer and
    Chief Financial Officer and a director
    (877) 932-8858