Aegis Brands forces conversion of 11% debentures due 2027

By William Gullotti

Buffalo, N.Y., Dec. 23 – Aegis Brands Inc. will convert its 11% convertible debentures due Nov. 17, 2027 on Jan. 23, according to a press release on Friday.

Aegis provided notice to Computershare Trust Co. of Canada that it has exercised its option to convert the entire principal amount of C$25,045,000 into common shares at conversion price of C$0.485.

Per the terms of the debentures, the forced conversion became exercisable after the weighted average trading price of the company’s common shares on the Toronto Stock Exchange exceeded 125% of the C$0.485 conversion price for 20 consecutive trading days, ending on and including the fifth trading day before the date of the notice to convert.

In connection with the forced conversion, Aegis will issue an aggregate of 51,639,175 common shares.

Holders will be entitled to receive accrued and unpaid interest, paid in cash, from and including December 31 up to and excluding the conversion date totaling C$6.63 per C$1,000 principal amount

Settlement is expected Jan. 30.

Toronto-based Aegis owns and operates Bridgehead Coffee and St. Louis Bar and Grill.

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