Strategem Capital Corporation – Distribution of Paid-up Capital and Class A Common Shares

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Ken Morgan
Email: or visit

VANCOUVER, BRITISH COLUMBIA – January 22, 2009. Strategem Capital Corporation (the “Company” or “Strategem”) (TSXV: SGE) announces that it has today completed the reorganization (the “Reorganization”) of the Company’s share capital and corresponding distribution (the “Distribution”) of the paid-up capital (“PUC”) of the Company’s common shares. 98.4% of the Company’s issued and outstanding common shares were tendered for exchange for cash and Class A Common Shares. A total of $9,050,182.75 was electronically distributed to shareholders together with 5,171,533 Class A Common shares distributed in exchange for the same number of common shares of the Company.

Strategem further announces that it has extended the January 16, 2009 deadline to tender common shares for exchange into Class A Common shares and cash to certain shareholders holding 84,091 shares. The Company has contacted such shareholders and advises that the acceptance of such shares for exchange is at the Company’s discretion. The extended offer to exchange shares will be open for a limited period of time to be determined at the Company’s discretion. Such shareholders are advised to tender their shares for exchange as soon as possible. The 84,091 shares represent all of the remaining common shares of the
Company outstanding on January 16, 2009 which were not tendered for exchange.

Shareholders should refer to the Company’s news releases dated January 13, 2009, December 16, 2008 and the Management Information Circular dated October 30, 2008 for a summary of the Reorganization and Distribution.

About Strategem Capital

Strategem Capital Corporation is a publicly-traded merchant bank focused on the development of emerging companies with growth potential. The Company invests in
debt and/or equity positions in these companies.

This release and prior releases are available on the Company’s Internet web site located at


“Kenneth W. Morgan”
Kenneth W. Morgan, CA, CPA
President, CEO and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Forward-Looking Information:

Certain statements contained in this news release constitute forward-looking statements. Forwardlooking statements are often, but not always, identified by the use of words such as “anticipate”, “plan”,“expect”, “may”, “will”, “intend”, “should”, and similar expressions.

Forward-looking statements in this news release include references to receipt of required regulatory and TSX Venture Exchange approvals and references to the Company proceeding with the reorganization of its share capital and distribution of the paid-up capital of its Common shares as described in this news release.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including the risks that: the Company may not obtain TSX Venture Exchange approval; the Company may not have sufficient funds to effect the transactions described in this news release including sufficient funds to distribute cash to all registered shareholders who duly tender their Common shares in exchange for Class A Common shares and cash; registered shareholders may not tender their Common shares for exchange; the Company may not meet the Exchange’s minimum listing requirements for the Class A Common shares or the Class B Common shares.

The forward-looking statements contained in this news release represent the Company’s expectations as of the date of this news release, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of news release, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.