Coventree Inc.

Toronto, Canada: (May-07-07) A lawsuit was brought by minority shareholders and employees of its subsidiary Nereus Financial Inc. against Coventree Inc. A settlement was reached when Coventree agreed to provide a comprehensive settlement of the various matters that were in issue relating to Nereus. Among other things, the settlement agreement resolves all issues relating to the previously announced notice of application filed by certain minority shareholders of Nereus against Coventree. The settlement agreement includes Coventree purchasing the remaining shares of Nereus from Nereus' minority shareholders. In addition, Coventree has agreed that all existing employees of Nereus will be terminated and, as a result, will receive certain one-time termination payments. These matters will result in a net after-tax loss to Coventree of approximately $3.5 million. After completion of the share purchases and certain related transactions, Coventree will own 100% of the outstanding shares of Nereus. [CNW TELBEC: NEREUS SHAREHOLDERS]

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Published on May-9-07