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MonArc Corporation (MONA:PK) Various Business Matters Update

MONTREAL, Aug 19, 2009 /PRNewswire-FirstCall via COMTEX/ -- Mon Arc Corporation (www.monacorporation.com - MONA.PK) The issuer responding to its shareholders, and followers requests to provide a corporate update on its corporate developments is pleased to provide the following report.
The company has completed the spinoff of its ITI Bio Tech division, and other China holdings. Its Peru mining operation remains in non compliance. The company will start legal proceedings shortly. The issuer is desirous of becoming a solicited and a reporting issuer via filing of its 15c211 as previously announced on many occasions. The issuer's solicitor was advised by the sponsoring market maker (due to compliance matters) that an audit or an audited North American operating subsidiary would be required before its 15c211 application would be accepted. The issuer successfully located a North American operating company (see news release of May 22 2009) http://www.pinksheets.com/pink/quote/quote.jsp?symbol=MONA (H T Processing)

It appears now that H T, although a great business, is unwilling or unable to audit requirement. In summary, the issuer signed a share Exchange Agreement to acquire H T Processing Ltd., http://www.grainduster.com. H T is a private Canadian seed and farm input wholesaler, with sales of just over $1.3 million CDN ($1.17M USD) for the year ending December 31, 2008. The issuer may have no other option but to rescind the deal with HT. The acquisition was originally completed on an all-stock basis. Any stock issued in connection with this merger will be returned back to the treasury.

In the past, MONA thrived as a Special Purpose Acquisition (SPC) company who primarily targeted Asian markets. As an SPC the company has 5 separate spin offs of assets and cash scheduled to distribute to its shareholder base. These have NOT been cancelled and are being processed by various branches transfer agent, FINRA to name a few. The company is waiting patiently for these to be processed. Although the company has received many inquiries on this topic, and is aware that a loosely disorganized group of disgruntled employees, franchisees and defendants in a slander lawsuit (dressed up as shareholders) are posting false and misleading information on the company's business activity; the company reminds its followers that these individuals may have a hidden agenda, and alternative motives for their activities. On the update of the slander lawsuit (the issuer is a co beneficiary of the slander complaint). It appears the $ 4 million dollar default judgment is imminent against the defendants. It appears the defendants are pinning all of their hopes on a certain new USA law, which has never been tested in any appeal in USA or any International court, does not cover retroactive claims and may not cover commercial matters. The company is advised that upon issuance of the judgment expected shortly, the company has already spoken to a USA Florida attorney who is prepared to enforce the judgment, and have the same affirmed by a Supreme Court should the need arise. This will be the next logical step.

In summary MONA is alive and doing well. It is NOT a distress company by any stretch of imagination. This is a company that conducted a lot of commerce over the years starting in the sub prime financing industry to being an SPC to Asian companies, and a few other businesses in-between. The company thrived under the leadership of Mr. Garr Winters as its CEO in the subprime business, and later as its Secretary while it conducted business as an SPC. The rescission of HT merger brings MONA back full circle to still requiring a new operating company for its 15c211 filing or otherwise remain as an unsolicited issuer. This is not what the company wants and it expects to fulfill this obligation made to its shareholders of becoming a solicited issuer. There are several other unfulfilled obligations or promises made which the company intends to fulfill. To that end, the company has requested the services of Mr. Garr Winters who is semi retired executive to aid MONA in this process as a consultant, and not as an officer or a director of the company.

MONA entered a quiet period to allow Mr.Winters to carry out his consultancy duties. The company is pleased to advise that an alternative solution has been found for its 15c211 or becoming a solicited issuer aspirations. A suitable solicited public company merger candidate has been located, which will dispense the need for an audit or a 15c211 for MONA. In summary MONA will become a solicited issuer or be a solicited company using this back door approach. Right now MONA'S top priority is to restore its share price values, so that at closing day with a merger targeted company, and at the share exchange point MONA shareholders can receive a maximum benefit ie 1-1 exchange vs 50 or even 100 MONA shares for 1 of the merger company. Under the rules this will be free trading share exchange. MONA is not ruling out even a small share buy back campaign or any other remedies available at its disposal in order to meet its targeted objectives, of 2 to 3c per share.

As MONA critics will no doubt relentlessly be out in full force, be it known that the targeted merger candidate is not a client nor was it ever, nor is it a client of any MONA'S advisors, IR company, its lawyers or accountants to the best of MONA'S or Mr. Winters' knowledge.

Obviously, MONA will release the names and details of all of the aforementioned transactions and pending matters as filings on Pink Sheets in due time when the timing is correct and beneficial to itself and only to its shareholders.

Further updates will follow shortly.

Safe Harbor Statement

Information in this press release or filing may contain statements about future expectations, plans, prospects or performance of MonArc Corporation that constitute forward-looking statements for purposes of the safe harbor Provision's under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be," "expects," "may affect," "believed," "estimate," "project," and similar words and phrases are intended to identify such forward-looking statements. MonArc Corporation cautions you that any forward-looking information provided by or on behalf of MonArc Corporation is not a guarantee of future performance. None of the information in this press release or filing constitutes or is intended as an offer to sell securities or investment advice of any kind. MonArc Corporation's actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond MonArc Corporation 's control. In addition to those discussed in MonArc Corporation's press releases, public filings, and statements by MonArc Corporation's management, including, but not limited to, MonArc Corporation's estimate of the sufficiency of its existing capital resources, MonArc Corporation's ability to raise additional capital to fund future operations, MonArc Corporation's ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities and, in identifying contracts which match MonArc Corporation's capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. MonArc Corporation does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

CONTACT: For corporate matters contact: [e-mail] or www.minamargroup.com/helpdesk

SOURCE MonArc Corporation (MONA)