COF.H Coventree

NEX Symbol:  COF.H TORONTO, Oct. 24, 2011 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the "Company") today provided a further update regarding the previously announced sanction hearing to be held on October 26 and 27, 2011 by the Ontario Securities Commission ("OSC") in connection with the proceedings commenced by OSC staff against Coventree and one current officer, Geoffrey Cornish, and one former officer, Dean Tai. Staff of the OSC has advised Coventree that, at the sanction hearing, it will be seeking a number of sanctions against the respondents including an order requiring that Coventree and Messrs. Tai and Cornish each pay an administrative penalty of $5 million and jointly pay $1.5 million in costs incurred during Staff's investigation.  Staff is also seeking an order that Coventree's securities be cease traded pending the wind up of the company, that Coventree be prohibited from becoming a registrant under securities legislation until it is wound up and that Coventree be prohibited from making use of any securities law exemptions pending the winding up of the company.  Coventree will oppose Staff's position on sanctions against Coventree, including the monetary penalties described above. Staff has also advised that they will be seeking an order that Messrs. Tai and Cornish may not seek or accept any indemnification from Coventree in relation to any administrative penalty ordered by the OSC against them. Coventree understands that Messrs. Tai and Cornish intend to oppose such an order. Coventree intends to provide a further update following the completion of the sanction hearing. This press release is intended for distribution in Canada only. Neither the 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. Coventree Inc. CONTACT: Craig Armitage Ani Hotoyan-JolyThe Equicom Group Inc. Coventree Inc.Tel: (416) 815-0700 x278 Tel: (416) 572-2721Email: carmitage@equicomgroup.com Email: ani@coventree.ca

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