WesternOne Equity Income Fund Announces $655,000 Conversion of Convertible Debentures in the First Half of April 2011
18 Apr, 2011, 09:58 ET
VANCOUVER, April 18 /PRNewswire/ - WesternOne Equity Income Fund ("WesternOne Equity") (TSX: WEQ.UN, WEQ.DB and WEQ.DB.B) today announced the conversion of $640,000 principal amount of the 5 year, 9% senior secured convertible debentures - Series A ("Series A Debentures") and $15,000 principal amount of the 8.5% convertible unsecured subordinated debentures ("Unsecured Debentures"), plus accrued interests thereon, to 158,940 WesternOne Equity Income Fund units ("Units") at the request of debenture holders during the first half of April 2011.
As of April 15, 2011:
- $5,960,000 principal amount of Series A Debentures, plus accrued interests thereon, have been converted to 1,443,014 Units at a conversion price of $4.20 since the public offering of Series A Debentures on August 15, 2006; and
- $15,000 principal amount of Unsecured Debentures, plus accrued interests thereon, have been converted to 2,920 Units at a conversion price of $5.25 since the public offering of Unsecured Debentures on February 16, 2010.
The combined addition of 1,445,934 Units resulted in a market capitalization of $8.47 million based on a Unit price of $5.86 at the close of the market on April 15, 2011.
As of April 15, 2011, 15,182,958 Units, $4,155,900 million principal amount of Series A Debentures and $27,585,000 principal amount of Unsecured Debentures were outstanding.
"We continue to see strong demand for Series A Debenture conversions which further deleverage our existing capital structure, as well as strengthen our market capitalization and liquidity," said Mr. Darren Latoski, CEO of WesternOne Equity. "We are also very pleased to see the first conversion of Unsecured Debentures shortly after the first anniversary of its public offering in February 2010. This is a further testament to our debenture holders' confidence in our business through participation in the equity ownership of WesternOne Equity."
Certain statements in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance, achievements or industry results, to be materially different from any future results, performance, achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations or future actions.
Forward-looking information included in this press release includes, but is not limited to, statements with respect to WesternOne Equity's business and management's assessment of future plans and operations. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risks and Uncertainties" in WesternOne Equity's Annual Information Form dated March 31, 2011, which is available on SEDAR (www.sedar.com).
Although the forward-looking information contained in this press release is based upon what the WesternOne Equity's management believes to be reasonable assumptions, WesternOne Equity cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects management's current beliefs and is based on information currently available to WesternOne Equity. Such information reflects current assumptions regarding future events and operating performance including, without limitation, stability in the economy in Western Canada, interest rates and the equipment rental and sales and fuel wholesale markets in which WesternOne Equity operates, and speaks only as of the date of this press release. The forward-looking information is made as of the date of this press release and WesternOne Equity assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
About WesternOne Equity
WesternOne Equity seeks to acquire businesses in the sector of construction and infrastructure services, located primarily in the Western Canadian provinces of British Columbia, Alberta and Saskatchewan, in order to generate stable and growing distributions to its unitholders as well as to achieve overall capital appreciation.
Additional information about WesternOne Equity is available at www.weq.ca or www.sedar.com.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE WesternOne Equity Income Fund
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