Tajac Capital Inc.

July 23, 2009 13:40 ET

Tajac Capital Announces Termination of Proposed Qualifying Transaction

SURREY, BRITISH COLUMBIA--(Marketwire - July 23, 2009) - Tajac Capital Inc. (TSX VENTURE:TJC.P) ("Tajac" or the "Corporation") announces that its term sheet agreement with Balkan Resources Inc. ("Balkan") respecting a proposed transaction, dated effective March 1, 2008, has been terminated. Tajac had previously announced (March 27, 2008) that it had reached agreement with Balkan for the acquisition of 100% of the issued and outstanding shares of Balkan. The Corporation had intended that this transaction would meet the requirements for a Qualifying Transaction (as defined in TSX Venture Exchange Policy 2.4) however, certain obligations under the term sheet agreement were not fulfilled by Balkan within the timeframes stipulated in the agreement.

The Corporation made application pursuant to the TSX Venture Exchange (the "Exchange") bulletin titled Temporary Relief Measures dated November 3, 2008, for an extension of its deadline to complete a Qualifying Transaction. An extension of time to complete a Qualifying Transaction was granted to July 29, 2009. As set out in an Exchange bulletin dated June 30, 2009, if the Corporation is unable to complete a Qualifying Transaction by the extended deadline its trading status may be changed to a suspension without further notice. However, Tajac may be granted an additional 90 days in which it may continue to pursue the completion of a proposed Qualifying Transaction, notwithstanding that its common shares are suspended from trading. At the time of suspension, Tajac will receive a letter from the Exchange providing particulars of the two remaining options for retaining a listing on the Exchange, namely, the completion of a Qualifying Transaction or transferring to the Exchange's NEX Board. The Corporation will also be provided with a description of the Exchange's delisting procedures. The purpose of the 90 day extension after suspension is to provide Tajac with sufficient time to obtain the necessary approvals and provide the Exchange with the required documentation to transfer to NEX. If Tajac's common shares are suspended from trading for failure to complete a Qualifying Transaction, the Exchange may not accept any new Qualifying Transaction applications unless the Corporation transfers to NEX.

Trading in the common shares of Tajac was halted pending the announcement and completion of the proposed Balkan transaction, and it is expected that the halt will be changed to a suspension of trading on or about July 29, 2009.

Tajac continues to actively pursue other opportunities for potential Qualifying Transactions and believes that it will be able to complete a Qualifying Transaction, subject to the necessary Exchange approvals.

Forward-Looking Statements

Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "subject to" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Tajac Capital Inc.
    Terry Rogers
    President and CEO
    (604) 538-0483