Donald Campbell and George Bowley

June 03, 2005 13:35 ET

News Release

CALGARY, ALBERTA--(CCNMatthews - June 3, 2005) -

(Not for dissemination in the United States of America)

Donald Campbell and George Bowley (collectively, the "Purchasers") announce they have entered into an agreement to acquire an aggregate of 5,000,000 common shares in the capital of Colonia Corporation ("Colonia"), from two vendors in a private transaction (the "Acquisition"). The completion of the Acquisition is subject to regulatory approval.

The Purchasers have collectively agreed to purchase the 5,000,000 common shares of Colonia; however, they have not entered into any contractual arrangement with respect to the voting, control or direction of any shares of Colonia.

Concurrent with the Acquisition, Colonia will complete a financing through the issuance of 5,833,333 units of Colonia ("Units") at a price of $0.06 per Unit for gross proceeds of $350,000 (the "Financing"). Each Unit will consist of one common share of Colonia and one share purchase warrant entitling the holder thereof to purchase one common share of Colonia for $0.10 per share for a period of one year (the "Warrants"). Mr. Campbell has agreed to purchase 1,066,667 Units and his spouse has agreed to purchase 1,850,000 Units. Mr. Bowley intends to purchase 1,250,000 Units and his spouse intends to purchase 1,666,666 Units.

Other than the Warrants disclosed above, the Purchasers do not currently own, nor do they currently have any rights to acquire, any other securities of Colonia. However, they may, depending on market and other conditions, increase or decrease their beneficial ownership, control or direction over the common shares or other securities of Colonia, through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise.

Upon completion of the Acquisition and the Financing, the Purchasers, collectively, will own an aggregate of 10,833,333 common shares of Colonia, representing 46% of the issued and outstanding common shares of Colonia.

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

Contact Information

  • Donald Campbell
    (403) 540-2003