MONTREAL, Oct. 30, 2014 /CNW Telbec/ - Argex Titanium, Inc. (TSX: RGX), an emerging producer of high-grade titanium dioxide (TiO2) used as white pigment in paint, plastic, paper, cosmetics and other applications, reported that the Toronto Stock Exchange granted its application for the listing of $7,500,000 aggregate principal amount of 8% unsecured convertible debentures (the "Debenture") effective at the opening of business on Friday October 31, 2014, under the symbol, RGX.DB.
The Debenture were issued pursuant to a private placement which closed on June 30, 2014 under a trust indenture entered into on June 30, 2014 (the "Indenture") between the Corporation and CST Trust Company. The Indenture provides for appropriate adjustments to be made to the conversion privilege under the Debentures and other rights of the holders of Debentures in the event of share dividends, subdivisions, consolidations or other forms of capital reorganization involving Argex Titanium.
"The successful closing of the debenture financing in June and the listing of these debentures on the Toronto Stock Exchange solidifies our balance sheet and reflects the high level of interest from the institutional investment community," said Roy Bonnell, president and CEO of Argex Titanium. "We look forward to advancing our groundbreaking technology toward initial commercial production."
The Debentures mature on June 30, 2019, unless earlier redeemed, and bear interest at 8% per annum, which interest is paid in arrears in quarterly instalments. The Debentures are convertible into common shares of the Corporation until the maturity date at the option of the debenture holder at a conversion price of $1.14 per common share (the "Conversion Price"); this represents a conversion rate of approximately 877 common shares per $1,000 principal amount of Debentures.
The Debentures shall not be redeemable by the Corporation prior to June 30th, 2017. On or after June 30th, 2017 and prior to the maturity date, the Debentures may be redeemed by the Corporation, in whole or in part from time to time, upon terms set forth in the Indenture, which can be found on SEDAR.
About Argex Titanium
Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications. The company's unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex's process provides a significant cost and environmental advantage over current legacy TiO2 production methods.
Important Cautions Regarding Forward-Looking Statements
This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding future plans, costs, objectives or performance of Argex, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Argex will derive. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Argex's control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in Argex's Annual Information Form for the fiscal year ended December 31, 2013, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements. Argex does not intend, nor does Argex undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Argex Titanium Inc.