Sagittarius Capital Corporation

March 05, 2009 09:24 ET

Sagittarius Capital Corporation Announces Termination of Qualifying Transaction With Diversified Energy and Resource Corporation

TORONTO, ONTARIO--(Marketwire - March 5, 2009) - Sagittarius Capital Corporation ("Sagittarius" or the "Company")(TSX VENTURE:SCX.P), a capital pool company, today announced that its proposed acquisition of Diversified Energy and Resource Corporation ("DEAR"), has been terminated effective immediately.

On April 16, 2008, the Company entered into an agreement pursuant to which it intended to acquire all of the issued and outstanding shares of DEAR. The transaction was intended to constitute the Company's qualifying transaction under the policies of the TSX Venture Exchange. Closing was subject to a number of conditions including, but not limited to, regulatory approval, due diligence and the completion of necessary legal documentation. The global financial crisis had a significant effect on the value of DEAR's investments. DEAR was not able to follow through on the initially contemplated transaction and the parties were unable to come to mutually acceptable amended terms. For this reason the Company informed DEAR in writing that the period of time to close the transaction had expired and that Sagittarius was terminating discussions effectively immediately.

Management is in the process of considering currently available alternative qualifying transactions and will be making further announcements as to their efforts as soon as practically possible.

The management of the company, who take full responsibility for its content, prepared this press release. This press release contains forward-looking statements relating to future events and results that are based on current expectations. These statements involve risks and uncertainties. Consequently, actual events and results in future periods may differ materially from those currently expected.

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

Contact Information

  • Sagittarius Capital Corporation
    Robin Sundstrom
    Chief Executive Officer
    (416) 368-8770