Garneau Inc. Announces Special Shareholder Meeting to Consider Liquidation and Dissolution

    




 NISKU, AB, Sept. 28, 2011 /CNW/ - Garneau Inc. ("Garneau" or the "Corporation") announces that a special meeting of shareholders (the "Meeting") of the Corporation will be held on November 7, 2011 to consider and,  if thought advisable, pass, a resolution (the "Resolution") which would approve: (i) the liquidation of the Corporation; (ii) the  distribution of the remaining assets of the Corporation, which is  expected to be a small amount of cash; and (iii) the dissolution of the  Corporation, all in accordance with the requirements of the Business Corporations Act (Alberta) and pursuant to a plan of liquidation and dissolution (the "Plan"). The Resolution must be approved by two-thirds of the votes cast at  the Meeting.    Completion of the transactions to be approved at the  Meeting also remains subject to stock exchange and other applicable  regulatory approvals. 

 Garneau has ceased its active business operations.  The decision to put  the Resolution to the shareholders of Garneau at the Meeting resulted  from a review of the alternatives available to the Corporation by the  board of directors of the Corporation in its continuing efforts to  preserve shareholder value in the context of no business prospects and  a small remaining amount of cash that will continue to be depleted with  the stock exchange and reporting issuer compliance requirements that  Garneau is bound by.  In this context and considering the fact that the  implementation of the Plan presents the possibility that the  shareholders may receive a liquidating distribution of cash, the board  of directors of Garneau unanimously recommends that shareholders vote  in favor of the Resolution. 

 Garneau anticipates that a proxy and information circular for the  Meeting, which will provide greater detail on the transactions  referenced in this press release, will be mailed to shareholders very  shortly and will be available at www.sedar.com. 

 Forward-Looking Information 

 Certain information contained herein constitutes forward-looking  statements. Forward-looking statements are frequently characterized by  words such as "may", "plan", "expect", "project", "intend", "believe",  "anticipate" and other similar words, or statements that certain events  or conditions "may" or "will" occur. Forward-looking statements are  based on the opinions and estimates of management at the date the  statements are made and are subject to a variety of risks and  uncertainties and other factors that could cause actual events or  results to differ materially from those projected in the  forward-looking statements. 

 In particular, this document contains forward-looking statements  pertaining to the completion of the liquidation and dissolution of the  Corporation and the potential existence, size and timing of a  liquidating distribution. 

 Actual events could differ materially from those anticipated in these  forward-looking statements as a result of certain risk factors,  including the receipt of all necessary regulatory approvals for the  transactions contemplated herein, the receipt of required shareholder  approvals, the potential for unexpected costs and expenses such that  the Corporation will not have sufficient funds to complete a  Liquidation Distribution upon the completion of the transactions  contemplated herein, the possibility that the Plan of Liquidation is  not put into effect by the Board and the ability of a claimant, in  certain circumstances, to make claims after the Corporation is  dissolved that may be satisfied through the Liquidation Distribution  from the Shareholders up to 2 years after the date of dissolution.  

 The forward-looking statements contained herein are based on certain key  expectations and assumptions of the Corporation which are subject to  change. Although the Corporation considers these assumptions to be  reasonable based on information currently available to it, they may  prove to be incorrect. 

 You are cautioned not to place undue reliance on forward-looking  statements, which speak only as of the date hereof. The Corporation  does not undertake to release publicly any revisions to these  forward-looking statements to reflect events or circumstances that  occur after the date hereof or to reflect the occurrence of  unanticipated events, except as may be required under applicable  securities laws. 

 Neither 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. 

   

Garneau Inc.


CONTACT:  Glen Garneau ActingPresident and CEODarlene KirkpatrickProject and Communications ManagerPhone: [phone]Fax: [phone] 


    

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