MONTREAL, Québec (FSCwire) - Mazen Alnaimi, Executive Chairman and Chief Executive Officer of Argex Titanium Inc. (TSX: RGX) (the “Corporation” or “Argex”), announces that on October 5, 2016, he acquired an aggregate of 14,583,332 common share purchase warrants of Argex (collectively, the “Warrants”) issued by Argex, comprised of 2,916,666 “CEO Compensation Warrants” in payment of an amount of $87,500, representing 25% of Mr. Alnaimi’s base compensation of $350,0000 for the period from August 1, 2016 to July 31, 2017, and of 11,666,666 “Bonus Warrants”, the exercise of which is conditional upon the achievement by Argex of certain milestones relating to the progress of the Corporation’s titanium dioxide project (the “Transaction”). The Transaction was approved by Argex’s shareholders at an annual and special meeting held on September 15, 2016 and is described in Argex’s management information circular dated August 17, 2016, a copy of which is available on SEDAR under Argex’s profile.
Each Warrant entitles the holder thereof to acquire one common share of the Corporation at a price of $0.08 per share until September 21, 2021. Assuming the exercise of all Warrants, the 14,583,332 common shares issuable upon the exercise thereof would represent 7.7% of Argex’s shares that would then be issued and outstanding.
Immediately prior of the Transaction, Mr. Alnaimi held, directly or indirectly, 1,200 secured notes in an aggregate dollar amount of $1,200,000 (the “Notes”), convertible into a total of 39,999,600 common shares and 33,999,600 Warrants, and an option in respect of 6,000,000 common shares (the “Option”). Each of the Notes is convertible at the option of the holder into 33,333 common shares and 28,333 Warrants. Each of the Warrants entitles the holder to acquire one additional common share at a price of $0.05 over a five-year term. Assuming the conversion and exercise of all Notes and Warrants and the Option held by Mr. Alnaimi prior to the closing of the Transaction, he would have owned 79,999,200 common shares, representing 31.49% of Argex’s shares that would have then been issued and outstanding.
Immediately following the closing of the Transaction, Mr. Alnaimi holds, directly or indirectly, 1,200 Notes, convertible into a total of 39,999,600 common shares and 33,999,600 Warrants, 14,583,332 Warrants and the Option in respect of 6,000,000 common shares. Assuming the conversion and exercise of all Notes and Warrants and the Option held by Mr. Alnaimi, he would own 94,582,532 common shares, representing 35.12% of Argex’s shares that would then be issued and outstanding.
Mr. Alnaimi acquired ownership of the Warrants in payment of $87,500, representing 25% of Mr. Alnaimi’s base compensation of $350,0000 for the period from August 1, 2016 to July 31, 2017, and as “Bonus Warrants”, the exercise of which is conditional upon the achievement by Argex of certain milestones relating to the progress of the Corporation’s titanium dioxide project.
In accordance with applicable securities laws, Mr. Alnaimi may, from time to time and at any time, acquire additional Shares and/or other equity, debt or other securities or instruments (collectively, “Securities”) of the Corporation in the open market or otherwise, and he reserves the right to dispose of any or all of his Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of the Corporation and other relevant factors.
A copy of an early warning report filed by Mr. Alnaimi in connection with the Transaction is available on SEDAR under the Corporation’s profile. This news release is issued under the early warning provisions of Canadian securities legislation.
To obtain a copy of the early warning report filed by Mazen Alnaimi, please contact:
Nicole Blanchard
Corporate Communications and Investor Relations
Argex Titanium Inc.
(514) 843-5959
nblanchard@argex.ca
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/ArgexAlnaimiOct72016.pdfSource: Argex Titanium Inc. (TSX:RGX, WKN:A1J1GR, ISIN:CA04014T1021)
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