For immediate release;
Ottawa, Canada, April 6, 2010.
Ottawa, Canada—Spearhead Limited, Inc. (Pink OTC:SPHE) today announced that it has completed the sale of 100% of all the issuedand outstanding shares of its wholly own operating subsidiary, SpearheadManagement Canada Limited (the “Company”) to Donald Powell, Chairman of ThePowell Group, (the “Transaction”). The Company was the only operatingsubsidiary of SPHE. The Board of Directors of SPHE (the “Board”) votedunanimously in favor of the transaction. The Chairman of SPHE directly andthrough proxy agreements which represented in excess of the required minimumvotes to effectuate the Transaction, voted in favor of the Transaction.
After careful deliberation on the current state ofaffairs of the Company, the market conditions where the Company operates andthe future requirement to sustain the Company, the Board decided to seekguidance with professional advisors to review strategic alternatives for the Company’sfuture development. The conclusions were that a new financing or the sale ofpart or all of the Company were the best alternatives. The Board engaged innegotiations for the sale of a material interest in the Company to a strategicacquirer which led to the sale of the Company.
The main considerations of the Transaction were; (i)the write-off the $ 1,141,583 loan due from SPHE to the Company as at December31, 2009; (ii) the injection by the buyer of $ 1,200,000 in the working capitalof the Company which proceeds paid; (a) the arrears to the sub-contractors; (b)the operating bank line of credit, consequently, releasing the guaranty provideby SPHE in favor of the bank.
The closing of the financial reorganization of SPHE announcedon August 27, 2009 and the closing of the Transaction will allow SPHE tocomplete its quarterly financial statements as at March 31, June 30, September30 and its yearend financial statement as at December 31, 2009.
Once the financial statements are completed, SPHEwill mail to its shareholders the financial statements and information circular.
SPHE will focus on analyzing strategic mergers &acquisitions to complete a material transaction during the year ending December31, 2010.
END OFRELEASE
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| Michel Marengere Spearhead Limited. Inc. | +1 561 391 9991 |