The Toronto Stock Exchange reports that Cineplex Inc. has filed a preliminary short form prospectus dated July 7, 2020, for a proposed offering of convertible unsecured subordinated debentures in the minimum principal amount of $1,000 each. The company expects to file a final short form prospectus for the offering in the next few days.
According to the TSX, as soon as possible after the final prospectus is cleared by relevant securities regulatory authorities, the TSX will post the debentures for trading on an if, as and when-issued basis under the symbol CGX.DB.B and Cusip No. 172454 AC 4. Before the debentures are posted for trading on such basis, the TSX will issue a trader note to confirm both the conversion price and the rate of interest for the debentures, as well as the expected closing date of the offering.
The TSX reports that subject to the closing of the offering: (i) all trades in CGX.DB.B on and before the third trading day preceding the closing date will be for special settlement on the closing date and will appear on the settlement report from CDS Clearing and Depository Services Inc.; and (ii) all trades in CGX.DB.B for each of the two trading days preceding the closing date will be for special settlement two
business days after the trade date and will appear on the settlement
report from CDS. If the offering does not close, all of the if, as and
when-issued trades will be cancelled; no securities will be delivered
and no money will be owed by purchasers to sellers.
The TSX reports that parties who are entitled to receive debentures under the offering
may sell such securities in the if, as and when-issued market
without being subject to restrictions on short sales. Parties who are
not entitled to receive debentures under the offering must comply
with the short sale rule in all respects for any sales they make in the
if, as and when-issued market. The debentures will be quoted and traded on an interest-flat basis
and not on an accrued interest basis as interest on the debentures
will only accrue from the date that the debentures are issued.
According to the TSX, if and when the offering closes, there will be no further trading in CGX.DB.B on an if, as and when-issued basis, and the debentures issued at such closing will trade on a regular settlement basis.
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