Coventree Provides Update Regarding Debenture Repayment

    




 NEX Symbol:  COF.H 

 TORONTO, Jan. 4, 2012 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree"  or the "Company") announced today that, on December 31, 2011, it repaid  in full the limited recourse debentures in the amount of approximately  $3.2 million (including interest) that matured on that date. The  proceeds from the initial issuance of these debentures in 2004 were  loaned by Coventree to a company owned by Geoffrey Cornish and to two  companies owned by Dean Tai. Mr. Cornish is a director and current CEO  of Coventree, Mr. Tai is a former director and CEO of Coventree, and  each of them currently owns or controls, directly or indirectly,  approximately 25% of the outstanding shares of Coventree. 

 Those loans are evidenced by separate promissory notes and secured by  pledges of an aggregate of one million common shares of Coventree that  are owned by the companies owned by Messrs Cornish and Tai.  These  promissory notes also matured on December 31, 2011. 

 Coventree has agreed to extend until March 31, 2012 the maturity date  for the loan owing by Mr. Cornish's company. No extensions have been  granted in respect of the loans owed by Mr. Tai's companies and these  loans are now in default. The aggregate amount of the loans owed to  Coventree by Mr. Tai's companies was approximately $1.62 million at  December 31, 2011, and the aggregate amount of the loan owed to  Coventree by Mr. Cornish's company was $1.55 million at that same date. 

 Coventree intends to take appropriate steps to recover the amounts owing  by Mr. Tai's companies including, if necessary, realizing on its  security. 

 This press release is intended for distribution in Canada only. 

 Neither the TSX Venture Exchange nor its Regulation Services Provider  (as that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

  





     






   

Coventree Inc.


CONTACT:  Craig Armitage                               Ani Hotoyan-JolyThe Equicom Group Inc.                -or-   Coventree Inc.Tel: [phone] x278                     Tel: [phone]Email: [e-mail]            Email:  [e-mail] 


    

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