The Toronto Stock Exchange reports that Constellation Software Inc. will distribute one warrant per share held to shareholders of record on Aug. 24, 2023. The ex distribution date is Aug. 23, 2023, and the payable date is Aug. 29, 2023.

According to the TSX, the warrants will not be exercisable by the holders thereof unless and until Constellation exercises its right to redeem the unsecured subordinated floating rate debentures, Series 1, of the company. If Constellation exercises the redemption right, each warrant will become exercisable for a period of 30 calendar days starting from the date that the company provides notice to the holders of its Series 1 debentures that it is exercising the redemption right.

Each warrant will, upon exercise, entitle the holder thereof to receive, on the 10th business day following the last date of the warrant exercise period, $100 principal amount of unsecured subordinated floating rate debentures, Series 2, of Constellation for each $100 principal amount of Series 1 debentures tendered for repurchase by the company. The Series 2 debentures will be identical in all material respects to the Series 1 debentures, except that the Series 2 debentures will not include a redemption right. Other than tendering the Series 1 debentures for repurchase, no additional exercise price will be owing by a holder of a warrant upon the exercise of a warrant.

The TSX notes that all unexercised warrants will expire on the earlier of: (i) the first date on which all outstanding Series 1 debentures have matured or have otherwise been repurchased, redeemed or cancelled; and (ii) March 31, 2040. The TSX understands that Constellation has no current intention to exercise the redemption right. If and when the redemption right is exercised, the company plans to apply to list the warrants on the TSX during the warrant exercise period.

For more information, see Constellation's news release dated Aug. 15, 2023.