Stone Investment starts cash offer for debentures, warrants

By William Gullotti

Buffalo, N.Y., Nov. 30 – Stone Investment Group Ltd. announced the separation of its debentures and warrants, a repurchase offer for the warrants and an offer to acquire 7,293 debentures, according to a press release on Tuesday.

On Nov. 24, the company initiated a repurchase for cancellation of all outstanding warrants at a repurchase price of C$0.05 per warrant, payable in cash. No action is required by warrantholders, and the transaction will be completed Dec. 21.

Stone-SIG Acquisition Ltd., a wholly-owned subsidiary, is offering to purchase 7,293 debentures at C$670 per debenture. The cash offer is open to all debentureholders, but only the first 7,293 debentures deposited will be accepted for the offer.

Debentureholders cannot participate in the offer unless a letter of transmittal is completed and delivered.

Letters of transmittal will not be accepted until Dec. 2.

The cash offer is expected to be completed on Dec. 21.

As part of the transaction, the company entered an arm’s length credit agreement on Nov. 29 to fund the cash offer.

The financing is conditional on, among other things, extending the maturity of the debentures to Dec. 28, 2026.

Stone Investment is an independent wealth management company based in Toronto.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.