and there is this other newsInformed That Quest Ventures Ltd. Has A Binding Agreement To
9/11/01
GLENEX INDUSTRIES INC ("GXI-V;GLXIF-0") - Informed That Quest Ventures Ltd. Has A Binding Agreement To - Acquire 1,870,000 Shares
Glenex Industries Inc. ("Glenex") announced that it has been informed that Quest Ventures Ltd. ("Quest") has a binding agreement to acquire 1,870,000 shares (the "Purchased Shares") of the Company (19.9% of the issued and outstanding share capital) from The Royal Bank of Canada (Bahamas) Ltd. Closing of the transaction is scheduled for September 28, 2001. The purchase price for the shares includes a premium over the apparent net liquidation value of Glenex, which Quest has estimated at between $0.40 and $0.45.
Quest is a private merchant bank based in Vancouver, British Columbia that is owned and managed by A. Murray Sinclair and Brian E. Bayley. Quest provides a range of services varying in nature from conventional asset backed lending to more venture oriented equity investments and, in certain instances, catalystic investments. Historically, Quest has focused on tangibly based industries including real estate, manufacturing, oil & gas and other natural resources. Over the past 3 1/2 years Quest has arranged and/or funded collateralized bridge loans totalling over $225 million CDN.
Mr. Barry Phillpots has today resigned from Glenex's Board of Directors and been replaced by Mr. Murray Sinclair, a principal of Quest. Mr. Robert Boyle and Mr. Jan-Willem Gritters remain as directors. Coincident with the closing of the purchase transaction, Mr. Gritters will resign from Glenex's Board of Directors and be replaced by Mr. Brian Bayley, a principal of Quest.
Glenex has also been informed that the Purchased Shares intend to vote against the resolution at the shareholders meeting September 28, 2001 whereby Glenex would be liquidated. The Board of Directors intends to make an application with the Canadian Venture Exchange ("CDNX") to have Glenex's shares reinstated for trading as soon as possible.
Given the time and expense required to effect such liquidation and given that the apparent net liquidation value of Glenex is between $0.40 and $0.45 depending on market and other conditions, and given Quest's willingness to (a) pay a premium to such liquidation value and (b) to have the shares reinstated for trading, the Board of Directors believes that it has successfully discharged its fiduciary responsibilities to enhance and maximize shareholder value.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. TEL: (604) 689-1428 A. Murray Sinclair and/or Brian E. Bayley TEL: (416) 260-0811 Robert Boyle