MFC Industrial – MIL – Announces Acquisition Of Special Warrants Of Compton Petroleum Corporation
MFC Industrial Ltd. (NYSE: MIL) announces that it has acquired, though its indirect wholly-owned subsidiary, MFC Acquisition Inc., 6,548,498 special warrants of Compton Petroleum Corporation at a price of $1.25 per Warrant pursuant to the special warrant agreement between the Company and Compton dated July 6, 2012 and previously announced by the parties on July 9, 2012.
The Warrants are convertible into common shares of Compton on a one-for-one basis. Conversion is automatic in certain events and otherwise at the option of MFC. The Warrants are also redeemable, at the option of MFC and prior to conversion, at their subscription price upon the occurrence of certain events. The Compton Shares underlying the Warrants represent approximately 19.9% of the outstanding Compton Shares on a post-conversion basis as at the date hereof. Proceeds from the exercise of the Warrants will be utilized by Compton to pay down its current bank facility.
Together with Compton Shares and cashless warrants held by the Company (MIL) and its affiliates and assuming conversion of the Warrants and cashless warrants, the Company would hold 6,835,998 Compton Shares, representing 20.7% of the outstanding Compton Shares based on the number of Compton Shares outstanding as at the date hereof.
The Warrants were acquired for investment purposes. The Company (MIL) will evaluate its ownership position in Compton from time to time and intends to acquire additional securities of Compton in the future pursuant to its previously announced offer to acquire all of the outstanding Compton Shares. The Company has filed a report (as contemplated by National Instrument 62-103 The Early Warning System and Related Takeover Bid and Insider Reporting Issues) in connection with the acquisition of Warrants described herein.
About MFC Industrial Ltd. – MIL
MFC (MIL) is a global commodities supply chain company, which sources and delivers commodities and materials to clients, with a special expertise on the financing and risk management aspects of the business.
More Posts by this author
- Stocks End Higher for a Second Straight Day
- Gold Prices Settle Lower; Silver Prices also Slip
- Stocks Hold on to Gains in Late Trading
- Stocks Extend Gains in Mid-Day Trading
- CARBO Ceramics – CRR – Increase in the Company’s quarterly dividend
- Western Refining – WNR – Announces $200 Million Stock Repurchase Program
- MB Financial – MBFI – Second quarter results for 2012
 |
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
|
