Yonge Street Capital Corp.

May 16, 2008 13:01 ET

Yonge Street Capital Corp.: Corporate Update-Tamaka Holdings LOI Expiration

TORONTO, ONTARIO--(Marketwire - May 16, 2008) - Yonge Street Capital Corp. ("Yonge Street")(TSX VENTURE:YSC.P), a capital pool company, announces a corporate update.

Yonge Street advises that its letter of intent ("LOI") with Tamaka Holdings Inc. ("Tamaka") executed on November 19, 2007 has expired and the parties have agreed to an amicable mutual termination and release.

Trading in the shares of Yonge Street was halted at its request on November 26, 2007 pending the announcement of the LOI with Tamaka pursuant to the provisions of Section 10.9(1) of the Universal Market Integrity Rules. Yonge Street has taken action to have the trading of its shares resume.

While Tamaka's business was attractive to Yonge Street, Yonge Street believes market conditions are not conducive to it being able to close a transaction with Tamaka on terms reasonably suitable to both Tamaka and Yonge Street within a reasonable time. Under the circumstances Yonge Street remains open to a future arrangement with Tamaka but will also explore other options. No funds were advanced to Tamaka relative to the LOI.

Investors are cautioned that trading in the securities of a capital pool company should be considered highly speculative.

Further information concerning Yonge Street can be found in the prospectus of Yonge Street dated March 27, 2006 and at www.sedar.com.

The TSX Venture Exchange has not approved or disapproved the contents of this news release.

Contact Information

  • Yonge Street Capital Corp.
    Gerald Ruth
    President, CEO and Director
    (416) 899-3304