Leitrim Group Inc.
TSX VENTURE : LTM.H

November 15, 2005 14:39 ET

Leitrim Group Inc. Announces Filing of Preliminary Prospectus

OTTAWA, ONTARIO--(CCNMatthews - Nov. 15, 2005) - Leitrim Group Inc. (TSX VENTURE:LTM.H) announced today that it has filed a preliminary prospectus in the provinces of Ontario, Alberta and British Columbia for its proposed offering of units. Each Unit will be priced at $0.15 and will consist of one common share and one half common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at an exercise price of $0.30 for twelve months.

The offering is conditional upon Leitrim's successful acquisition of all the issued and outstanding shares of Savers Plus GTA Inc. and Magnum Fine Commercial Printing Limited, which is subject to regulatory approval. On closing of this acquisition, Leitrim will be the parent company of two wholly-owned subsidiaries, Savers and Magnum. Following completion of the offering and subject to regulatory and shareholder approval, Leitrim intends to change its name to "Savers Plus International Inc.".

The offering is expected to raise gross proceeds of a minimum of $2,000,000 and a maximum of $2,500,000. Leitrim expects to use the net proceeds for the business of Savers Plus International, particularly in the areas of sales and marketing, product development, selective investments and acquisitions of new products, technologies and businesses and for working capital and general corporate purposes.

Savers develops and markets local, regional and national discount savings programs for the fundraising, promotional, commercial and affinity markets. Savers products and programs include custom coupon cards, affinity data group programs, hospital and lodging programs, online initiatives and value card programs. These products are geared towards various client industries including the financial services, telecommunications, automotive, real estate and non-profit industries. Savers products and programs are designed to provide clients with value added programs it can deliver to their customers to build client brand, loyalty and revenues without eroding primary product margins. Savers, through its proprietary and partnered programs, has access to over 120,000 name brand value offers from local, regional and national merchants across North America.

Magnum designs and manufactures printed promotional and commercial goods for a large range of businesses throughout North America. Magnum's business has been in operation since 1985. Magnum provides full, in-house graphic design and offset printing services to the trade industry, commercial and non-profit business sectors.

The integration of both Savers and Magnum into Savers Plus International is expected to provide increased efficiencies for the delivery of new value added programs to clients across North America and assist in the launching of such programs in the UK and Australia.

Octagon Capital Corporation is acting as agent on the offering on a commercial reasonable efforts basis. Davis & Company LLP and Gowling Lafleur Henderson LLP act as legal counsel for Leitrim and the agent, respectively.

Leitrim expects to close the offering as soon as possible following the issuance of a receipt for a final prospectus by the securities regulators in the offering provinces.

Contact Information

  • Leitrim Group Inc.
    Brian Penney
    Chairman
    (902) 425-7424