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Vista Gold Corp. Announces Acceleration of Expiry of Warrants Issued in Connection With February 2003 and September 2004 Private Placements
Vista Gold Corp. Announces Acceleration of Expiry of Warrants Issued in Connection With February 2003 and September 2004 Private Placements.
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\n\nDENVER, May 1 /CNW/ -- Vista Gold Corp.\n(Amex: VGZ; Toronto) announces that, in accordance with the terms of the\nCorporation's outstanding common share purchase warrants (the \"February 2003\nWarrants\") issued under a Warrant Indenture dated February 7, 2003, and the\noutstanding common share purchase warrants (the \"September 2004 Warrants\" and\nwith the February 2003 Warrants, the \"Warrants\") issued under a Warrant\nIndenture dated September 29, 2004, the Corporation has elected to accelerate\nthe expiry date of all such currently outstanding Warrants since the\n\"Acceleration Event\" described in the applicable warrant indentures has\noccurred.\nFor the February 2003 Warrants, the Acceleration Event occurred on\nApril 26, 2006, because the closing price of the Corporation's common shares\non the American Stock Exchange exceeded 150% of the current exercise price\n(US$4.28) for the 15 consecutive trading days prior to that date. For the\nSeptember 2004 Warrants, the Acceleration Event occurred on April 28, 2006,\nbecause the closing price of the Corporation's common shares on the American\nStock Exchange equaled or exceeded US$5.50 for the 20 consecutive trading days\nprior to that date.\nThe expiry date of the February 2003 Warrants will now be May 17, 2006,\nand the expiry date of the September 2004 Warrants will now be May 19, 2006.\nThe Warrants must be exercised by 4:30 p.m. (Vancouver time) on the respective\nexpiry dates, failing which they will expire. Notices of acceleration of the\nexpiry were sent on April 26, 2006, to holders of the February 2003 Warrants\nand were sent on April 28, 2006, to holders of the September 2004 Warrants.\nOf the February 2003 Warrants, there are currently 574,000 outstanding,\nexercisable at US$4.28 per share, for potential aggregate proceeds to the\nCorporation of US$2,456,720. Of the September 2004 Warrants, there are\ncurrently 1,459,798 outstanding, exercisable at US$4.75 per share, for\npotential aggregate proceeds to the Corporation of US$6,934,040.50. All of\nthese common shares issuable upon exercises of the Warrants have previously\nbeen registered with the SEC for resale under the Securities Act of 1933 on\nregistration statements on Form S-3.\nThe acceleration of the expiry date of the warrants above reflects an\nimproved market for Vista shares caused in part b...