DoveCorp Enterprises Inc.
TSX VENTURE : DOV

DoveCorp Enterprises Inc.

December 15, 2006 14:30 ET

DoveCorp Announces CDN$2.0 Million Private Placement

TORONTO, ONTARIO--(CCNMatthews - Dec. 15, 2006) - DoveCorp Enterprises Inc. (TSX VENTURE:DOV) ("DoveCorp" or the "Company") is pleased to announce that it proposes to raise up to $2,000,000 in a private placement of units ("Units") of the Company at a price of $0.14 per Unit (the "Offering"). Each Unit will consist of one common share of the Company ("Common Share") and one-half of one Common Share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire a further Common Share at an exercise price of $0.20 per share for a period of 24 months from the closing date. The Warrants shall be subject to accelerated expiry provisions such that if at any time after 4 months from closing DoveCorp's shares trade on the TSX Venture Exchange at or above a weighted average trading price of $0.40 per share for 20 consecutive trading days, DoveCorp may give notice in writing and by news release to Warrant holders that the Warrants will expire 30 days from the date of providing such notice.

Weslosky & Cowans Ltd. ("WESCOW") has been engaged by the Company to assist on a best efforts basis in raising a portion or all of the Offering. WESCOW will receive a fee equal to 8% of the gross proceeds raised in the Offering by investors that are introduced by WESCOW to the Company and a broker's option exercisable into that number of Units equal to 8% of the Units issued in the Offering to investors that are introduced by WESCOW to the Company.

It is expected that the Units will be sold on a private placement basis in the Province of Ontario and such other jurisdictions as the Company may determine. It is anticipated that the Offering will be completed on or about December 22, 2006 but may occur in one or more tranches before and/or after such date. Completion of the Offering is subject to receipt by the Company of all necessary regulatory approvals including approval of the TSX Venture Exchange.

The net proceeds of the Offering will be used for general working capital purposes.

About DoveCorp:

DoveCorp is a leader in Canada's dry-cleaning and laundry industry, with the only ISO 9001 dry cleaning registration in the world. For more than 10 years, its flagship Dove Cleaners division has been widely recognized by various fashion and industry magazines as among the best premium dry cleaning and laundry services in Canada. At the same time, its Dove Depot, Meena Cleaners, and Natural Cleaners divisions excel in the mass market. DoveCorp's acquisition of Cadet Cleaners, a leader in the Greater Toronto Area for 50 years, has brought the number of DoveCorp's retail locations to 98. In addition, Dove Cleaners Commercial is a full-service provider of linen, uniforms, and mat rentals. The company also provides out-sourced dry cleaning and laundry services.

Forward-looking statements

This document contains forward-looking statements relating to DoveCorp's financial performance, operations or to the environment in which it operates, which are based on DoveCorp's operations, estimates, forecasts, and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond the company's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the company's corporate filings, (posted at www.sedar.com). Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, DoveCorp cannot be certain that actual results will be consistent with these forward-looking statements, and the company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

DOVECORP ENTERPRISES INC. 35 SUNTRACT ROAD TORONTO, ON M9N 2V8

This press release shall not constitute an offer to sell of the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved of the contents of this release. The TSX Venture Exchange has in no way passed on the merits of the transaction described herein.

Contact Information

  • DoveCorp Enterprises Inc.
    Sam Mizrahi
    President and CEO
    (416) 782-8788 x 223
    Email: sam@dovecorp.com