News Releases From NEX Companies For October 5th

There were no news releases from any NEX company that were picked up by Marketwire on Friday, although there were two bulletins from NEX issues that were included at the bottom of Friday's TSX Venture Daily Bulletins: both involved trading halts. The first bulletin announces that the present trading halt in Emergence Resorts Canada Inc. will continue, "pending receipt and review of acceptable documentation regarding the Qualifying Transaction pursuant to Listings Policy 2.4." The second bulletin, pertaining to Pacific Wildcat Resources Corp. [NEX: PAW.H], mentions a new halt imposed before trading opened, at 6:30 AM PT or 9:30 AM ET, pending news from the company. Canjex Publishing has a webbed copy of the Pacific Wildcat bulletin. PAW.H last closed at 21 cents/share on September 27th.

Canjex has also webbed a news release from Emergence that explains the Qualifying Transaction mentioned above; it's the first of two news releases sent out exclusively through Canjex. Emergence is planning to buy CSP Telecom, a private company incorporated under the laws of Quebec, and has reached an agreement in principle with the owners of the latter company. "The parties have agreed that the total purchase price for all of the issued and outstanding shares of CSP shall be $5-million payable by the issuance of 10 million Class A common shares of Emergence at a deemed price of 50 cents per common share." CSP, according to the release, is a profitable business that reported $353,336 in revenues as of fiscal year 2006, and EBITDA (earnings before interest, tax, depreciation and amortization) in the amount of $78,941. Estimated revenue for FY 2007 is $947,500, and estimated EBITDA is $78,647. This purchase will be financed through Northern Securities Inc., which is acting as sponsor so as to make it a Qualifying Transaction for a Tier 2 Venture listing. The details of the financing reveal that the 50-cent shares of ERS.H are actually units, containing one common share and one purchase warrant (with strike price of 75 cents/share and life of two years) in each unit. The assignation of 50 cents of value to the shares imply that the value of the warrants is negligible as of the time of the financing. The release also states, "The value attributed to CSP may be subject to a valuation conducted by an independent valuator which, in such an event, would be selected and paid by Emergence. Should the independent valuation establish a different value than the purchase price, the purchase price will be adjusted and the number of common shares either reduced or issued accordingly." Emergence last closed on September 26th, at a price of 36 cents/share. More details on this transaction are expected to be released later.

The second news release through Canjex on Friday was from Newstrike Capital Inc. [NEX: NES.H], disseminated in the evening (ET) long after trading closed. It says that the Energy Speculator has "in its Sept. 17, 2007, issue, passes on to subscribers troubling news that talks between Stans Energy Corp. and Newstrike Capital Inc., now $1.05, regarding their reverse takeover broke down." The rest of the release passes on the context of the now-halted deal, which was supposed to be a Qualifying Transaction for Newstrike. NES.H closed at $1.10/share, unchanged since Thursday's close; the $1.05 price referred to in the excerpt was an odd-lot-sized trade of 34 shares, which was the last of the day.


To read about the highlighted NEX stocks for Friday, you can go here.