TORONTO, ONTARIO--(Marketwired - April 30, 2015) - 2455440 Ontario Inc. (the "Offeror") announced today that it has filed an Early Warning Report as required by National Instrument 62-103 in relation to its acquisition of 7% secured convertible debentures (the "Debentures") of Quest Rare Minerals Ltd. (the "Company") in the aggregate principal amount of $2,500,000 and at the option of the Offeror, can be converted into common shares of the Company (the "Common Shares") at a price of $0.13 per Common Share. The Offeror also acquired beneficial ownership in the aggregate of 2,500,000 warrants of the Company (the "Warrants), each of which entitles the Offeror or acquire one Common Share of the Company at a price of $0.15 for four years.
Prashant Pathak, an affiliate of the Offeror, may be considered to be acting jointly or in concert with the Offeror. Prashant Pathak has beneficial ownership of 30,000 deferred share units (the "DSUs") of the Company, representing 0.02% of the issued and outstanding Common Shares should all of the DSUs be settled for Common Shares.
Immediately after the transaction, the Offeror had beneficial ownership of securities convertible into 21,730,769 Common Shares of the Company, representing approximately 21.61% of the issued and outstanding Common Shares of the Company should all of the Debentures and Warrants (collectively, the "Securities") be converted.
On an aggregate basis, the Offeror and Prashant Pathak have beneficial ownership of the Securities and DSUs convertible into 21,760,769 Common Shares, representing approximately 21.63% of the issued and outstanding Common Shares should all of the Securities be converted and DSUs be settled for Common Shares.
An Early Warning Report reflecting the above-noted acquisition has now been filed, a copy of which is available on SEDAR at
www.sedar.com.