Coventree Provides Further Update on OSC Proceeding

    




 NEX Symbol:  COF.H 

 TORONTO, Oct. 24, 2011 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree"  or the "Company") today provided a further update regarding the  previously announced sanction hearing to be held on October 26 and 27,  2011 by the Ontario Securities Commission ("OSC") in connection with  the proceedings commenced by OSC staff against Coventree and one  current officer, Geoffrey Cornish, and one former officer, Dean Tai. 

 Staff of the OSC has advised Coventree that, at the sanction hearing, it  will be seeking a number of sanctions against the respondents including  an order requiring that Coventree and Messrs. Tai and Cornish each pay  an administrative penalty of $5 million and jointly pay $1.5 million in  costs incurred during Staff's investigation.  Staff is also seeking an  order that Coventree's securities be cease traded pending the wind up  of the company, that Coventree be prohibited from becoming a registrant  under securities legislation until it is wound up and that Coventree be  prohibited from making use of any securities law exemptions pending the  winding up of the company.  Coventree will oppose Staff's position on  sanctions against Coventree, including the monetary penalties described  above. 

 Staff has also advised that they will be seeking an order that Messrs.  Tai and Cornish may not seek or accept any indemnification from  Coventree in relation to any administrative penalty ordered by the OSC  against them. Coventree understands that Messrs. Tai and Cornish intend  to oppose such an order. 

 Coventree intends to provide a further update following the completion  of the sanction hearing. 

 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.              Coventree Inc.Tel: [phone] x278            Tel: [phone]Email: [e-mail]   Email:  [e-mail] 


    

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