Synergex Corporation
TSX : SYX

Synergex Corporation

June 06, 2008 09:15 ET

Synergex Seeks Shareholder Approval for Board Authority to Consider a Stock Consolidation

MISSISSAUGA, ONTARIO--(Marketwire - June 6, 2008) - Synergex Corporation (TSX:SYX), a leading international provider of integrated logistics and distribution services, announced today that it has mailed a management information circular to holders of its common shares in connection with its annual and special meeting of shareholders to be held on June 30, 2008 in Mississauga, Ontario. The information circular describes, among other things, the particulars of the Company's proposal for an amendment of its Articles of Incorporation authorizing the Company's Board of Directors to enact a stock consolidation (also known as a "reverse stock split") on a one-for-five basis.

The principal effect of the share consolidation would be that the number of issued and outstanding common shares would be reduced from approximately 111,602,785 to approximately 22,320,557. The decision to effect a stock consolidation and the timing of any such decision would be at the sole discretion of Synergex' Board of Directors. A stock consolidation would also be subject to approval by the Toronto Stock Exchange.

Details regarding the background, reasons and impact of the proposed share consolidation are described in the information circular, a copy of which is available electronically at www.sedar.com. The information circular also describes the particulars of the other matters to be voted upon at the meeting, and the manner in which shareholders may vote on such matters. Shareholders are urged to review the information circular in detail.

David Aiello, Synergex' President and CEO, commented, "We believe this reverse split will enhance the marketability of Synergex' shares, making them more acceptable to institutional and other investors who may be dissuaded or precluded from investing in lower-priced stocks. The consolidation will also adjust the number of issued and outstanding common shares to a level better suited to a company of our size."

About Synergex Corporation

Synergex is a Canadian based international integrated logistics company providing distribution, freight forwarding and logistics services under its Commercial Gateway business group. It is among the largest distributors of video games and accessories in Canada.

Product lines are being expanded to include other licensed products, related to video games or their license owners, taking advantage of the wide range of products originating from movies, home entertainment and licensed characters often included within, or resulting from, the creation of video games.

Headquartered in Mississauga Ontario, with operations across North, Central and South America, Synergex serves a broad base of customers that includes a number of multinational enterprises. Synergex is listed on the Toronto Stock Exchange and trades under the symbol SYX. For further information, please visit www.syx.ca.

Forward-Looking Statements

Some of the statements contained in this news release may be forward-looking statements such as the Company's future plans, objectives and goals. The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties, which could cause actual results to vary considerably from these statements.

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