Business
Altius Minerals Announces Exercise of Warrants Held by Fairfax, Surrendering for Cancellation of Preferred Securities and Filing of Early Warning Report
ST. JOHN’S, Newfoundland and Labrador / Apr 14, 2022 / Business Wire / Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) is p
About this update from Altius Minerals Corporation
[{"type":"text","content":"ST. JOHN’S, Newfoundland and Labrador / Apr 14, 2022 / Business Wire / Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) is pleased to report that on April 14, 2022, Fairfax Financial Holdings Limited, through certain of its affiliates (collectively, “Fairfax”) exercised 6,670,000 common share purchase warrants (the “Warrants”) at an exercise price of $15 per common share in the capital of Altius (each, a “Common Share”) for gross proceeds of $100 million. In accordance with the terms of the Warrants and the preferred security indenture dated April 26, 2017 between the Corporation and TSX Trust Company (the “Indenture”) governing the Corporation’s 5% subordinate preferred securities (the “Preferred Securities”), Fairfax has elected to pay the exercise price of the Warrants by surrendering its $100 million Preferred Securities to Altius for cancellation, in full satisfaction of the exercise price payable in respect of the Warrants (the “Transaction”). The Warrants and the Preferred Securities were originally issued on April 26, 2017. Prior to the Transaction, Fairfax directly or indirectly owned or controlled an aggregate of no Common Shares, 6,670,000 Warrants and $100 million Preferred Securities, which represented 13.94% of the issued and outstanding Common Shares as of April 14, 2022, on a partially diluted basis. Following the completion of the Transaction, Fairfax will directly or indirectly own or control 6,670,000 Common Shares, which represents 13.94% of the issued and outstanding Common Shares as of April 14, 2022, on a non-diluted basis, and Altius will have no outstanding Warrants, Preferred Securities or resulting interest distribution obligations. This investment will be reviewed on a continuing basis by Fairfax and Fairfax may in the future acquire or dispose of the Common Shares through the open market, privately or otherwise, as circumstances or market conditions warrant. Brian Dalton, CEO of Altius stated, “We are very pleased to welcome Fairfax as a new major shareholder of Altius and to build upon the mutual success that has resulted from our relationship over the past five years. Fairfax’s original Preferred Security investment came at a very cyclically opportune time for our business and provided partial funding for several important long-term investments including our acqu...