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CORRECTION FROM SOURCE: KST Industries Inc. Announces Purchase of Data Group Inc. Convertible Debentures
MISSISSAUGA, ON / ACCESSWIRE / January 15, 2016 / This document corrects and replaces the pr...
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[{"type":"text","content":"CORRECTION FROM SOURCE: KST Industries Inc. Announces Purchase of Data Group Inc. Convertible DebenturesMISSISSAUGA, ON / ACCESSWIRE / January 15, 2016 / This document corrects and replaces the press release that was issued by KST Industries Inc today, January 15, 2016 at 10:15 AM EST.\nKST Industries Inc. (\"KST\") announced on December 16, 2015 that it had has purchased $6,657,000 of aggregate principal amount of 6% convertible unsecured subordinated debentures (the \"Debentures\") of Data Group Ltd. (\"DG\") at a price of $3,328,500. The Debentures are listed for trading on the Toronto Stock Exchange (\"TSX\"), and the purchase was effected through the TSX.\nThe Debentures purchased represented 14.89% of the issued and outstanding Debentures at that date.\nKST then owned 3,280,500 Common Shares of DG being 13.97% of the issued and outstanding Common Shares that date.\nOn November 12, 2015, DG announced the redemption of $33,500,000 (or approximately 75%) of the aggregate principal amount of the Debentures and that it had elected to satisfy its obligation to pay the redemption price by issuing and delivering Common Shares in lieu of cash. The number of Common Shares to be issued and delivered was determined by dividing the redemption price by 95% of the volume - weighted average trading price of the Common Shares on the TSX for the 20 consecutive trading days ending December 16, 2015.\nBased on the then current trading price of the Common Shares, DG was required to issue a large number of Common Shares, which would significantly dilute existing shareholders. In the absence of the purchase of the Debentures, KST would following conversion of the Debentures have ceased to be an insider of DG as a result of its shareholdings in DG.\nKST is today announcing the number of Common Shares of DG and Debentures that it now holds as a result of the conversion.\nAs a result of the purchase of the Debentures, KST continues to hold 155,266,183 Common Shares, being 15.55% of such class, and thus remain an insider of DG. KST also continues to hold $1,742,000 aggregate principal amount of the Debentures being approximately 15.6% of the outstanding Debentures.\nIn addition to KST's holding of Common Shares and Debentures, KST has a relationship with Harinder Takhar, who is an insider of KST as a result of his being a member of the Board of Dire...