Magnotta Winery Corporation

Magnotta Winery Corporation

March 27, 2007 19:14 ET

Magnotta Winery Corporation Announces Going-Private Transaction Not Proceeding

VAUGHAN, ONTARIO--(CCNMatthews - March 27, 2007) - Magnotta Winery Corporation (TSX:MGN) (the "Company") announced today that the proposed going-private transaction previously announced on February 6, 2007 in which Gabriele Magnotta and Rossana Magnotta, the principal shareholders of the Company, were to acquire all of the outstanding common shares of the Company other than shares held by the Magnottas and affiliated entities will not proceed. The proposed going-private transaction was to have been effected through the amalgamation of the Company with Magnotta Family (2003) Corporation, a wholly-owned subsidiary of the Magnottas' holding company, Magnotta Family Holdings Ltd.

The special meeting of shareholders (the "Meeting") of the Company which was to be held on or about March 29, 2007 to consider the proposed going-private transaction has been cancelled since dissent rights pursuant to votes cast by shareholders voting by proxy were exercised in respect of more than 5% of the issued and outstanding common shares of the Company as at the date of the Meeting. As at the date hereof, the Company had 13,932,005 outstanding common shares, of which approximately 39.5% were held by minority shareholders, being shareholders other than the Magnottas and their affiliates.

Contact Information

  • Magnotta Winery Corporation
    Rossana Magnotta
    (905) 738-9463 or Toll Free: 1-800-461-9463
    (905) 738-5551 (FAX)