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Technology Stocks : Plaintree (TSE:LAN,NASDAQ:LANPF) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn McDougall who wrote (1504)	9/30/1999 8:03:00 AM
From: David Michaud	Read Replies (1) \| Respond to of 1606

NP says Plaintree will ask shareholders to approve merger Plaintree Systems Inc LAN Shares issued 18,167,203 1999-09-29 close $0.77 Thursday Sep 30 1999 The National Post reports in its Thursday edition that Plaintree Systems Inc. will ask shareholders in November to approve its proposed merger with Targa Group, the company told its annual meeting yesterday. The merger, which Plaintree executives expect will be approved, is the culmination of a year that has left Plaintree in vastly different shape than it was at least year's annual meeting. Jay Richardson, Plaintree's chief executive, said shareholders were optimistic and upbeat yesterday. "We aired all the dirty laundry of the past year today," Mr. Richardson said after the meeting. Plaintree's salvation is the merger with Targa, a profitable private company that makes electronic equipment for the aerospace sector. Plaintree, faced with mounting losses and slow sales of its gigabit Ethernet switches, wants to assume control of Targa's business in exchange for 46 per cent of Plaintree's shares. Shareholders will receive a proxy information circular on the proposed deal in the next few weeks. A special meeting to vote on the proposal will be held some time in November.

To: Glenn McDougall who wrote (1504)	9/30/1999 8:12:00 AM
From: Glenn McDougall	Respond to of 1606

Plain turns into gain After 8 months of suffering, Plaintree ready for rebound By KEVIN BELL, Business Editor, Ottawa Sun Beleaguered Plaintree Systems Inc. may be a shadow of its former self, but the firm said yesterday it's ready for growth after eight painful months. The Stittsville firm, which was at death's door earlier this year, is close to completing a turnaround that will include the release of a new product and the possible rehiring of former employees, chief executive Jay Richardson said. But getting to a position where the company can grow has meant lots of sacrifices by employees. "We have essentially taken Plaintree to the bottom in the last eight months and taken it up the other side," Richardson told shareholders at the firm's annual meeting. Richardson was brought on board in late February after Plaintree had already announced it would close for good if it didn't find financing within 30 days. The company, which had never posted an annual profit in its 11-year history, launched a drastic downsizing as it searched desperately for a saviour. The restructuring cost 110 jobs, bringing the number of employees to 30. The saviour was Ottawa-based Targa Group, which will take over Plaintree and operate as one of five subsidiaries. In a complicated deal, Plaintree essentially takes over Targa while Targa receives 49% of Plaintree shares and $2.8 million. "All of this has been done without selling off any of the crown jewels of the company," Richardson said. "Nobody said we were going to be here after February, but here we are." As part of the deal, creditors have reached a settlement with Plaintree and the company is negotiating with holders of preferred shares to convert them into common shares. Richardson expects Plaintree will begin its new life under Targa's stewardship in November if the deal is okayed by shareholders. Although Plaintree revenues have shrunk to $4-5 million from $28 million in 1997, its sales could exceed all of Targa's existing revenues, he said. Last year, Targa made $1.2 million in 10 months on revenues of $8 million. Richardson said shareholders seem to approve of the changes since they have driven up Plaintree stock from less than 20cents last month to 77cents yesterday.