IBI Group Inc. announces revised debenture proposal
Date
May 28, 2014
TORONTO – IBI Group Inc. announces that it has rescheduled the special meeting of holders of its 7.0% convertible unsecured subordinated debentures to 10:00 AM EST on June 27, 2014. An amended management information circular in connection with the rescheduled meeting will be mailed to holders of the Debentures and filed with the Canadian securities regulatory authorities. Any forms of proxy/consents sent to Debentureholders with the management information circular dated April 29, 2014 and received by IBI will not be counted, and Debentureholders will be asked to submit a completed amended form of proxy/consent.
New Enhanced Incentives to Consent/Vote FOR
After engagement with Debentureholders and based on the feedback received, the Company is now offering Debentureholders two new enhanced incentives in exchange for their vote FOR/consent to the proposed amendments. Either option is available to Debentureholders that deliver and do not withdraw valid proxies voting FOR the Debenture Amendments on or prior to 5:00 p.m. (Eastern Time) on June 25, 2014.
Option A – Promissory Note:
Receive a consent fee, consisting of an unsecured, non-convertible promissory note equal to $195.65 per $1,000 principal amount of Debentures, payable December 31, 2016 and bearing interest at the rate of 7.0% per annum and payable on maturity; or
Option B – Promissory Note + Reduced Conversion Price:
Receive (i) a consent fee, consisting of an unsecured, non-convertible promissory note equal to $86.96 per $1,000 principal amount of Debentures, payable December 31, 2016 and bearing interest at the rate of 7.0% per annum and payable on maturity and (ii) the reduction of the conversion price for the Debentures to $5.00 per common share from $19.17 per common share.
