Groupe Conseil Omnitech Inc. ("GCO") (TSX VENTURE: GCO) files its Default Status Report in compliance with CSA Staff Notice 57-301.
GCO's directors and officers are presently the object of a Management CTO prohibiting them to trade GCO securities. A request to this effect has been filed to the regulatory authorities when it became apparent that GCO would not be able to file its year end audited financial statements, subsequent quarterly unaudited financial statements and their related management report within the prescribed delays.
A press release dated January 4th, 2007 described the reasons of the delay, namely the procedures related to the filing of the notice of intent to make a proposal to creditors in accordance with the provisions of the Bankruptcy and Insolvency Act. The procedures were completed around April 25 by the issuance of 195,247,999 common shares of GCO to its creditors. The total of outstanding common shares of GCO is now 253,027,374. The proposals to the creditors offered the payment of 100% of the value of creditors' claims in common shares of GCO at a price per share of $0.05.
Since then, clerical mistakes regarding the registration of claims of two creditors were discovered. To correct these inaccuracies, GCO will issue 207,238 additional shares at a presumed price of $0.05 per share to settle a total debt of $10,361.86. In addition, Mr. Claude Belley, founder and former officer of GCO, is disputing the rejection of his claim of $375,516.75 regarding a lease. In the event that the courts rule in his favour, GCO will have to issue 7,510,335 additional shares.
GCO continues its audit process which encountered delays due to the complexity of the file but is progressing in order for GCO to be able to file its audited financial statements in mid-July 2007.
Following the press releases dated April 2 and May 22, 2007, GCO announces that it has filed earlier today, a price reservation form with the TSX Venture Exchange Inc. as part of the conditional offer for a private placement with Echo Capital FIER Outaouais LLP for investments between $1 and $2 million (one million being invested by Echo Capital), through the issuing of a convertible debenture carrying a 9% coupon payable semi-annually and maturing in five (5) years, in order to obtain an additional 45 days delay to finalize the transaction. We refer the reader to the press releases mentioned above for the details of the transaction.
In accordance with CSA Staff Notice 57-301, GCO confirms that except as described herein: (i) there is no material change in the information contained in the Notice of Default; (ii) there is no failure of GCO to fulfill the intentions stated in its Notice of Default or any Default Status Report; and (iii) there is no other material information concerning the affairs of GCO that has not been generally disclosed.
About Omnitech Consultant Group Inc. ("GCO")
GCO is a Canadian leader in performance engineering. GCO offers solutions as a one-stop-shop in engineering, information technology and systems maintenance. GCO is capable of intervening in all aspects of industrial engineering and information technology, thus combining a major and distinctive niche compared with the competition. GCO integrates new technologies or optimizes existing systems by applying cutting-edge expertise currently used in the best practices.
TSX Venture Exchange Inc. assumes no responsibility regarding the relevance or accuracy of this press release.
Groupe Conseil Omnitech inc.
Philippe Collard, Chief Executive Officer
Philippe R. Bertrand, Vice-president, Corporate Affairs