IVG Enterprises Ltd.

August 17, 2006 09:10 ET

IVG Announces Resumption of Trading, Closing of Reverse Take-Over with Well Elite Limited, and TSX.V Tier Reclassification

HONG KONG AND CALGARY, ALBERTA--(CCNMatthews - Aug. 17, 2006) - IVG Enterprises Ltd. ("IVG" or the "Corporation") (TSX VENTURE:IVE) announces that its Common Shares have resumed trading effective at the opening on August 16, 2006.

The TSX Venture Exchange has accepted for filing the Corporation's reverse take-over transaction with Well Elite Limited. Pursuant to a share purchase agreement, the Corporation acquired all of the issued and outstanding shares of Well Elite Limited. The consideration for this acquisition was the issuance of 10,282,057 Common Shares at a deemed price of $0.62 per share and the issuance of 68,932,128 Class B series 1 convertible preferred shares at a deemed price of $0.62 per share. The total deemed consideration for the acquisition was $49,112,795. All of the 10,282,057 Common Shares and all of the 68,932,128 Class B series 1 convertible preferred shares are subject to a TSX Venture Exchange Tier 1 Value Security escrow agreement.

The TSX Venture Exchange has reclassified the Corporation as a Tier 1 company.

About IVG Enterprises Ltd.

From July 31, 2006, IVG Enterprises Ltd. operates principally through its wholly owned subsidiary, Well Elite Limited. Well Elite was established in 2001 and is in the business of trading various types of forestry products, such as woodchips and wood products, primarily in Japan, Taiwan and China.

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

Contact Information