DoveCorp Enterprises Inc.
TSX VENTURE : DOV

DoveCorp Enterprises Inc.

September 07, 2007 15:28 ET

DoveCorp Announces Results of Sale Process

TORONTO, ONTARIO--(Marketwire - Sept. 7, 2007) - DoveCorp Enterprise Inc. (TSX VENTURE:DOV), announced today that the CCAA Monitor (RSM Richter) has now identified what it believes to be the best offers for DoveCorp's assets.

On July 12, 2007, the Ontario Superior Court of Justice (the "Court") issued an order (the "Initial Order") granting the Company protection pursuant to the Companies' Creditors Arrangement Act ("CCAA"). RSM Richter Inc. was appointed the CCAA Monitor (the "Monitor").

Pursuant to a sale process approved by the terms of the Initial Order, prospective buyers were required to submit offers to the Monitor by August 22, 2007. The Monitor received a number of offers by the deadline. On August 30, 2007, the Monitor made a recommendation to the Independent Committee of the Board of Directors as to the best offers and following consideration of the key aspects of the various offers, the Independent Committee confirmed its agreement with the Monitor's recommendation.

The Monitor intends to work with the parties that submitted the offers over the next several weeks to close the transactions. This process includes seeking the Court's approval of the recommended transaction. Obtaining the Court's approval and closing the transaction is projected to take two to three weeks.

The results of the Court approved sales process has revealed a range of values for the assets of the Company that indicate the shareholders are unlikely to recover any value for their shares and therefore do not likely have any continuing economic interest in the Company.

Information regarding DoveCorp's restructuring can be found on the Monitor's website of RSM Richter Inc. at: http://www.rsmrichter.com/Restructuring/Dove.aspx

In a continuing effort to reduce costs, the position of Chief Financial Officer has been eliminated.

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, brought the number of DoveCorp's retail locations to 98 in early 2006, making it Canada's largest and fastest-growing company in the industry. 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