Valterra Wines Ltd.

July 05, 2005 16:04 ET

Valterra Wines Ltd.: Press Release

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 5, 2005) - Valterra Wines Ltd. (TSX VENTURE:VQA) reported today that the company has been in the process of reorganization following the sale of its subsidiary, Hester Creek Estate Winery Ltd. consequent upon foreclosure proceedings relating to such asset. The Company had considered a Change of Business into the resource sector where the Directors have considerable experience.

On June 16, 2005 the Company received a demand from Solicitors for James Blankemeyer claiming payment of approximately $750,000 and threatening the appointment of a Receiver. In 2002, the Company entered into settlement agreements with James Blankemeyer and European and Allied Commerce Ltd. to pay aggregate indebtedness of $920,000 by transference to a numbered company owned by James Blankemeyer and European and Allied Commerce Ltd. of the Company's interest in Cardiovascular Solutions Inc. and Biovan Inc. This transaction formed the subject of a fairness opinion which was considered by shareholders at an Extraordinary meeting of the Company on December 16, 2002 at which time the transaction was approved.

The Company has been and remains at all times, prepared to execute requisite documents as may be submitted by the purchasers to close the transaction and has audited its financial records to reflect the completion of the transaction.

The debt now claimed by Mr. Blankemeyer is the same debt which formed the subject of the settlement agreement. The Company has notified Mr. Blankemeyer's solicitor that it rejects the claim and intends to resolve the claim through negotiation, if possible.

As a result of the claims by Mr. Blankemeyer, three Directors of the Company, Mssrs. Page, Gayton and Odishaw, have tendered their resignations effective June 17, 2005. Mr. Schindel remains the sole Director.

Prior to their resignation, these Directors of the Company considered that it would no longer be possible to complete a reorganization comprising shares for debt settlements, acquisition of a resource property and issuance of equity to fund exploration and development expenses as well as transactional costs in the submission of a Change of Business application to the TSX-Venture Exchange. Trading in shares of the Company has been suspended for some considerable time and the Exchange has now given notice of delisting of the Company's securities effective June 20, 2005.


Barry Schindel, Director

Valterra Wines Ltd.

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

Contact Information

  • Valterra Wines Ltd.
    Barry Schindel
    (604) 684-9384
    (604) 688-4670 (FAX)