LOGiQ Asset Management Inc. Announces Results of Retraction of 7.00% Senior Unsecured Convertible Debentures
TORONTO, ONTARIO–(Marketwired – Jan. 12, 2018) - LOGiQ Asset Management Inc. (“LOGiQ“, or the “Company“) (TSX:LGQ) today announced that $13,698,000 of LOGiQ’s 7.00% senior unsecured convertible debentures due June 30, 2021 (the “Debentures“) were tendered for retraction pursuant to the retraction right granted to holders of Debentures (the “Debentureholders“) in connection with the sale by the Company to Purpose Investments Inc. of the asset management agreements and related assets relating to substantially all of the retail investment funds that were managed by the Company’s registered subsidiaries on December 15, 2017 (the “Transaction“).
As a result of the closing of the Transaction, certain amendments (the “Debenture Amendments“) to the indenture governing the Debentures became effective December 15, 2017. Complete details regarding the Debenture Amendments were outlined in the joint management information circular dated October 11, 2017 (the “Circular“), as supplemented by a Supplement to the Circular dated November 13, 2017 (the “Supplement“). The Circular and the Supplement are also available at www.sedar.com.
As described in the Supplement, the retraction price is $1,010 for each $1,000 principal amount of Debentures tendered for retraction (plus accrued and unpaid interest from and including December 31, 2017 to but excluding January 15, 2018 (the “Retraction Date“)). The aggregate amount of Debentures tendered for retraction did not exceed the maximum retraction amount of $15,170,000, as set out in the Debenture Amendments. As a result, LOGiQ will redeem the Debentures tendered for retraction in full and the only change to the Debentures pursuant to the Debenture Amendments will be that, on the maturity date of the Debentures on June 30, 2021 (the “Maturity Date“), for each $1,000 principal amount of Debentures, Debentureholders will be entitled to be paid $1,050 (representing $1,000 principal amount of Debentures and a premium of $50 for each $1,000 principal amount of Debentures), plus accrued and unpaid interest to but excluding the Maturity Date.
As noted in the Circular and the Supplement, the Company has an aggregate of $20,226,000 principal amount of the Debentures issued and outstanding. Following redemption of the Debentures tendered for retraction by the Company, there will be $6,528,000 principal amount of Debentures outstanding after the Retraction Date.
LOGiQ (logiqasset.com) provides investment management services to institutional investors through segregated managed accounts and pooled funds, and has an institutional global advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Excluding the retail assets under management that were the subject of the Transaction, LOGiQ had assets under management or advisement and institutional advisory sales-related fee earning arrangements that are not managed or advised, totaling over $3.1 billion as at September 30, 2017.
Notice to Reader: Forward-Looking Statements
This news release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “can”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
President & Chief Executive Officer
LOGiQ Asset Management Inc.
Mary Anne Palangio
Chief Financial Officer
LOGiQ Asset Management Inc.