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Organic Resource Announces Annual General Meeting
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Organic Resource Management Inc.
3700 Steeles Avenue West, Suite 601
Woodbridge, Ontario L4L 8K8
TEL: (905) 264-7700 FAX: (905) 264-7273
E-mail: info@ormi.com
Website: www.ormi.com
August 30, 2007 TSX Symbol: ORI
NEWS RELEASE
Organic Resource Announces Annual General Meeting
Woodbridge, Ontario - August 30, 2007. Organic Resource Management Inc. ("ORMI") today announced that it will be holding its annual general meeting on October 24, 2007, at 4:00 pm at Suite 4400, BCE Place, Bay Wellington Tower, 181 Bay Street, Toronto, Ontario. At the AGM, the Company intends to seek shareholder approval for a one for twenty consolidation of its shares and a reduction of its retained earnings deficit.
Share Consolidation: Previously, on May 16, 2007, the Company announced it would be seeking shareholder approval to consolidate the issued and outstanding common shares of the Company on the basis of one new common share for every ten issued and outstanding common shares. After further review and subject to regulatory approval, the Board of Directors will now be recommending to the shareholders a consolidation of authorized, issued and outstanding common shares of the Company on the basis of one new common share for every twenty issued and outstanding common shares.
The purpose of the share consolidation is to present the investment community with a more appropriate and compelling capital structure as the Company prepares for its anaerobic digester/ renewable energy initiatives. The Board believes that a higher stock price would generate greater interest among professional investors, institutions and potential financiers. If the Company is successful in generating interest among such entities, ORMI anticipates that shares of its common stock would have greater liquidity and thus be able to attract a stronger investor base.
Reduction of Retained Earnings Deficit: The Company will be seeking shareholder approval to reduce the retained earnings deficit at June 30, 2007. In order to absorb prior years' losses, it is proposing to reduce the stated value of the Company's capital stock by an amount equal to the retained earnings deficit of ORMI unconsolidated at June 30, 2007. These deficits are primarily the result of a five year write-off of intangibles assets resulting from the May 31, 2002 acquisitions of Organic Resource Management Inc. and A&A Anderson Tank Services. The Company believes that this adjustment will assist shareholders in better understanding ORMI's financial performance in the future.
Board of Directors: The Company will be proposing the following slate of directors at the annual general meeting: Charles Buehler, Frank Facto, Martin Fallick, Matthew Gaasenbeek, Gary Kain and Ian London. In accordance with good governance practice, five of the six proposed slate of directors are independent.
All of the items announced here today are part of a multi-step restructuring program the Company has undertaken that includes simplifying its balance sheet and organizational structure, strengthening its management and eliminating related party relationships. The restructuring program which began on June 1, 2007 includes the conversion of all the outstanding preferred shares into common shares, the amalgamation of the Company with its largest subsidiary, and concurrent name change to Organic Resource Management Inc., appointments at the board and executive level and the proposed elimination of related party relationships.
This press release is available on the Company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit the investor relations section of the Company's website at http://www.ormi.com/ORMI_Investor.asp. Alternatively, investors are asked to e-mail all questions and correspondence to info@ormi.com where they can also request addition to the Organic Resource investor e-mail list to receive all future press releases and updates directly.
About Organic Resource Management Inc.
Organic Resource is Canada's largest provider of vacuum truck services for the collection, treatment and disposal of organic and other non-hazardous liquid waste. ORMI services in excess of 8,000 commercial, industrial, institutional and residential customers in Ontario, Quebec, and British Columbia. Further information about ORMI may be obtained at the Company's web site at www.ormi.com .
Note: Certain information contained in this press release may be forward-looking and therefore subject to unknown risks or uncertainties. The actual results, performance or achievements of Organic Resource Management Inc. may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.
CONTACT INFORMATION
Corporate Inquiries
Charles H. Buehler,
Chairman & Chief Executive Officer
info@ormi.com
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