DiscFactories Corporation

DiscFactories Corporation

March 28, 2006 16:00 ET

DiscFactories Corporation Announces New CEO and Launch of Reorganization Initiative

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 28, 2006) - DiscFactories Corporation (the "Corporation") (TSX VENTURE:DSK) announces that Mr. Gary Freeman has been appointed President and a director of the Corporation effective today, subject to regulatory approval. Mr. Freeman replaces Mr. Fulvio Ciano, who has resigned as President and a director of the Corporation due to other business commitments. In addition, Mr. Anthony Ziolkowski has resigned as Chief Technical Officer. The board of directors wishes to extend its thanks to Mr. Ciano and Mr. Ziolkowski for their hard work and assistance in the Corporation's efforts over the past five years.

Mr. Freeman is a Vancouver-based entrepreneur who has over 24 years experience in corporate finance with extensive knowledge in marketing and shareholder relations. Although his interest is primarily in the mineral exploration sector, he has worked in a broad range of junior ventures.

The appointment of Mr. Freeman coincides with a decision by the Corporation's board of directors to launch a reorganization initiative. The Corporation has recently been notified by the TSX Venture Exchange that unless certain tier maintenance deficiencies by the Corporation are not resolved by June, 2006, the Corporation will be transferred to NEX. In addition, the Corporation will continue with the termination of its proposed Twin Rivers Media joint venture with Tumbleweed Publishing Corp, as announced on January 27, 2006. As a result of these developments, the directors have determined that it is in the best interests of the Corporation to pursue a reorganization whereby it will eventually divest its current business and acquire an alternative business with better prospects for the Corporation's shareholders.

The Corporation does not have any specific transaction planned at this time but it is anticipated that the Corporation's new business will be in the mineral exploration sector. As the Corporation's new President, Mr. Freeman will be primarily responsible for implementing the Corporation's reorganization. As part of its reorganization efforts, the Corporation is cancelling its previously announced shares for debt settlement of up to $261,000 in debt. In addition, the Corporation will complete a small private placement of approximately $50,000 by issuing 1,000,000 units at $0.05 per unit, each unit consisting of one common share and one share purchase warrant, exercisable for a two-year period at $0.05 per share. Proceeds from this financing will be used to fund the Corporation's reorganization. The Corporation will provide further updates as its reorganization efforts develop.

"We are very pleased that Gary is able to join us as President and a director," stated Edwin Bergsteinsson, Chairman of the Corporation's board of directors. "The board of directors is committed to building value for DiscFactories' shareholders. Unfortunately, our current business model is not achieving satisfactory results but we believe that there are opportunities in the mineral exploration sector and that Gary is well suited to helping us seize them."

On behalf of the Board of Directors:

Edwin Bergsteinsson, Chairman

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

Contact Information

  • DiscFactories Corporation
    Edwin Bergsteinsson
    (604) 681-2961
    (604) 601-8224 (FAX)