OTTAWA, Nov. 30, 2016 /CNW/ - Magor Corporation (TSX VENTURE:MCC) ("the Company" or "Magor") announces that on November 30, 2016 it has proactively filed a Notice of Intention to Make a Proposal ("Notice of Intention") pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (Canada) (the "BIA").

Pursuant to the Notice, Ernst & Young Inc. has been appointed as the trustee in the Company's proposal proceedings and will assist the Company in its restructuring efforts. As a result, the Company will be transferred to NEX.

This filing follows the Company's strategic review of its options as previously announced on October 26, 2016 and the subsequent halt of trading in the Company's shares on the TSX Venture Exchange on November 21, 2016.

The filing of the Notice has the effect of imposing an automatic 30-day stay of proceedings that will protect the Company and its assets from the claims of creditors while the Company pursues its restructuring efforts. This 30-day period may be extended with the authorization of the Ontario Superior Court.

The Company and management team continues to work closely with Sampford Advisors Inc. to successfully conclude the strategic review process. The Company is actively seeking further sources of funding although there can be no guarantee that the Company will be successful in securing further financing or achieving its restructuring objectives. In addition to the Notice of Intention filing the company has also initiated the delisting process. 

The Company currently has four directors on the board which include Sir Terry Matthews, John MacDonald, Dan Rusheleau and Jerry EdgertonMichael Mueller, Scott Marshall, John Watts and Dr. Calvin Stiller have resigned.

The Company will provide further updates as to the next steps of the process when these have been determined.

About Magor Corporation:

Magor develops and markets visual collaboration software addressing the needs of meeting rooms, desktops and mobility devices, as part of a cloud service offering called Aerus. Magor's Aerus service delivery platform removes the limitations of traditional video conferencing and collaboration tools to provide entirely new ways of interacting with video with the goal of creating new ways to be productive. To find out more about Magor Corporation (TSX-V: MCC), visit our website at http://www.magorcorp.com.

This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation.  Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties.  The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope", and "continue" (or the negative thereof), and words and expressions of similar import are intended to identify forward-looking statements. Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.  Factors that could cause results to vary include those identified in the Corporation's filings with Canadian securities regulatory authorities, as well as the applicability of patents and proprietary technology; the outcome of pending corporate transactions; possible patent ligation; regulatory approval of products in development; changes in government regulation or regulatory approval processes; government and third party reimbursement; dependence on strategic partnerships; intensifying competition; rapid technological change in the industry; anticipated future losses; the ability to access capital; and the ability to attract and retain key personnel. All forward-looking information presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Neither 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.

SOURCE Magor Corporation

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