Yonge Street Capital Corp.

December 27, 2006 17:09 ET

Yonge Street Capital Corp. Corporate Update

TORONTO, ONTARIO--(CCNMatthews - Dec. 27, 2006) - Yonge Street Capital Corp. ("Yonge Street") (TSX VENTURE:YSC.P), a capital pool company, announces an update on its negotiations to enter into an agreement (the "Agreement") to complete an arm's length qualifying transaction (the "Qualifying Transaction") with Hempline Inc. (operating as "Stemergy"), in accordance with the policies of the TSX Venture Exchange (the "Exchange").

On December 18, 2006, Yonge Street announced that merger talks with Stemergy were suspended pending Stemergy addressing internal matters of Stemergy. Yonge Street and Stemergy have since communicated, and merger discussions with Stemergy have been recommenced.

Yonge Street is a corporation existing under the provisions of the Canada Business Corporations Act and is a reporting issuer in the provinces of Ontario, Manitoba, Alberta and British Columbia. Yonge Street currently has 3,028,750 issued common shares. In addition, there are outstanding 302,875 stock options exercisable at $0.20 per share that have been granted to Yonge Street's directors and officers, and an agent's option to purchase 102,875 common shares at an exercise price of $0.20 per share granted to the agents on Yonge Street's initial public offering.

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