General Donlee gets OK for issuer bids on C$4.62 million convertibles

By Susanna Moon

Chicago, Nov. 10 - General Donlee Canada Inc. said it received approval from the Toronto Stock Exchange to purchase up to C$4,616,200 principal amount of its convertible unsecured subordinated debentures due 2014, representing 10% of the public float as of Nov. 4.

The price for any convertibles purchased under the normal course issuer bid will be the prevailing market price at the time of purchase, according to a company press release.

As of Nov. 4, there was $46,162,000 principal amount of the convertibles outstanding.

Purchases may begin on Nov. 14 and end on Nov. 13, 2012.

From May 1, 2011 to Oct. 31, the weighted average daily trading volume of the convertibles was $15,980 principal amount of its convertibles.

Under the exchange rules, General Donlee may purchase up to 25% of the weighted average daily trading volume, or $3,900 principal amount of its convertibles, on any day, subject to a weekly block purchase exemption.

General Donlee also said it received approval to purchase up to 739,491 of its common shares, representing about 10% of the public float as of Nov. 4.

General Donlee, a Toronto-based precision machining manufacturer, said the proceeds of the deal will be used to fund acquisitions, to repay existing senior debt and to fund general purposes.

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