Middlefield Bancorp announces amalgamation with 2M Energy Corp. and change to an investment fund

    




 TORONTO, Oct. 19, 2011 /CNW/ - MIDDLEFIELD BANCORP LIMITED ("MBN") is  pleased to announce that it has amalgamated with its wholly-owned  subsidiary, 2M Energy Corp. ("2M"), effective October 12, 2011.  The  amalgamation was implemented to reduce general and administrative  costs. 

 In addition, MBN is conducting a strategic review of its entire business  in order to seek to further reduce costs and maximize shareholder  value.  The outcome of this process is expected to be presented to  shareholders for approval, if necessary, at the upcoming Annual General  Meeting scheduled for March 6, 2012 (the "AGM"). 

 As a first step toward further cost reduction, MBN will become an  investment fund governed by National Instrument 81-106 effective on or  about November 1, 2011.  Cost savings will result for several reasons,  including MBN's not having to adopt the IFRS accounting regime until  such time as investment funds are required to do so.  In addition,  further cost savings will result from using Middlefield's existing  Independent Review Committee for conflict matters under National  Instrument 81-107 in place of MBN's current board of directors.  

 Becoming an investment fund is a natural evolution of MBN's business,  since MBN is currently primarily engaged in the business of investing  in equity and equity-related securities.  This change is not expected  to constrain the strategic alternatives under consideration for  presentation to shareholders at the AGM. 

 MBN trades on the Toronto Stock Exchange under the symbol "MBN". 

 Certain statements in this press release may be viewed as  forward-looking statements. Any statements that express or involve  discussions with respect to predictions, expectations, beliefs, plans,  intentions, objectives, assumptions or future events or performance  (often, but not always, using words or phrases such as "expects", "is  expected",  "plans" or "intends" (or negative or grammatical variations  thereof), or stating that certain actions, events or results "may",  "could", "would", "should" or "will" be taken, occur or be achieved)  are not statements of historical fact and may be forward-looking  statements. Statements which may constitute forward-looking statements  relate to: the proposed timing of the change of MBN to an investment  fund; the timing of the AGM; and expected costs savings and benefits  resulting from the change to an investment fund and the impact thereof  on MBN's strategic alternatives. Forward-looking statements are subject  to a variety of risks and uncertainties which could cause actual events  or results to differ from those reflected in the forward-looking  statements including as a result of changes in the general economic and  political environment, changes in applicable legislation, and the  performance of MBN. Such forward-looking statements are only  predictions; actual events or results may differ materially as a result  of risks facing MBN, many of which are beyond the control of MBN. MBN  does not undertake any obligation to update such statements.  

Middlefield Bancorp Limited


CONTACT:  visit our website at www.middlefield.com or contact:W. Garth JestleyPresident and Chief Executive Officer(416) 847-5346 


    

Copyright