Knightswood Financial Corp.
TSX VENTURE : KWF

Knightswood Financial Corp.

September 15, 2010 11:59 ET

Knightswood Financial Corp.: Disposition of Subsidiary-Opus Cranberries III Financial Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 15, 2010) - Knightswood Financial Corp. (TSX VENTURE:KWF) announced today that it has exercised its put option to sell all the shares it owns of Opus Cranberries III Financial Corp. The effective date for this transaction is September 30, 2010.

About Knightswood Financial Corp.

Knightswood Financial Corp. ("Knightswood") was incorporated in 1987 and operates as a merchant bank providing private entities ("Clients") with solutions to allow them to issue debentures that are eligible for registered plans (e.g. RRSPs, TFSAs, pension plans, etc). To assist its Clients, Knightswood establishes a subsidiary company for each Client which allows the Client's debenture product to be eligible for registered plans.

Once the subsidiary company is created for our Clients, Knightswood will either own all or a majority of the voting rights in the subsidiary company. Knightswood is not involved in the day-to-day operations of a subsidiary company, but rather, it is independently managed by the respective Client's management team. In addition, Knightswood does not receive the subsidiary company's residual returns nor does it absorb their losses. Everyone's interests are safeguarded by a "put and call" option termination agreement between Knightswood and the Client.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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