Groupworks Financial Corp.
TSX VENTURE : GWC

Groupworks Financial Corp.

June 06, 2007 17:40 ET

Groupworks Announces Exercise of Over-Allotment Option

TORONTO, ONTARIO--(Marketwire - June 6, 2007) - Groupworks Financial Corp. ("Groupworks" or the "Corporation") (TSX VENTURE:GWC) announces that, Jones, Gable & Company Limited (the "Agent"), Agent for the Corporation's Initial Public Offering ("IPO" or "Offering") of 6,300,000 Units that closed on May 28th, 2007 exercised the over-allotment option in full to purchase an additional 600,000 Units at $0.60 per Unit to raise aggregate additional gross proceeds of $360,000.

Each Unit consists of one common share (a "Common Share") of the Corporation and one-half of one share purchase warrant of the Corporation (each whole such share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $1.00 until 24 months following the closing date, provided that if the closing price of the Common Shares on the principle stock exchange on which such shares trade exceeds $1.20 for any 20 consecutive trading days, the Warrant term shall be automatically reduced and the Warrants will expire on the date that is 30 days following the issuance of a press release announcing the reduced Warrant term. Groupworks intends to use the net proceeds to reduce indebtedness and for operating purposes.

Jones, Gable & Company Limited received a cash commission plus agents' warrants equal in number to 7% of the aggregate Units sold pursuant to the exercise of the over-allotment option. Each agent's warrant is non-transferable and exercisable into Common Shares at a price of $0.60 for a period of 24 months following closing.

For further information, please refer to the Company's Prospectus dated April 27, 2007 available at sedar.com.

Groupworks Financial Corp. is a leading consolidator of independent employee benefits and pension consulting practices in Canada. The company's objective is to become a national benefits and pension advisory and administration organization, building on the success of its recent acquisitions of Buffett Taylor & Associates and The Investment Guild; providing superior customer service and solutions-based benefits and pension consulting to Canadian businesses for over 25 years.

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

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