BURNABY, BC, February 20, 2009 /CNW/ - Taiga Building Products Ltd. (TSX: TBL), ("Taiga" or the "Corporation") today announced that it has received a receipt dated February 19, 2009, for a final short form prospectus (the "Prospectus") filed with the securities regulatory authorities in each of the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador and the United States (the "Eligible Jurisdictions"), relating to its previously announced rights offering (the "Offering"). Taiga is seeking to raise up to $10 million in gross proceeds from the Offering.
Under the terms of the Offering, shareholders of record on March 2, 2009, will be entitled to receive one right ("Right") for each common share held. Each Right will entitle eligible holders to purchase 2.218 common shares of the Corporation at a price of $0.14 per common share. The exercise of Rights and the payment for common shares must be completed by 5:00 p.m. (Toronto time) on March 26, 2009 (the "Expiry Date"). Shareholders who fully exercise their Rights are entitled to subscribe pro-rata for additional common shares, if available, that are not otherwise subscribed for on or before the Expiry Date.
As previously announced, although there is no standby purchase commitment with respect to the Offering, the Corporation's two principal shareholders have each expressed an intention to the Corporation to exercise at least its basic subscription right, subject to customary conditions, and provided that in any event, neither will exercise its Rights under the Offering such as to acquire beneficial ownership, control or direction over 50% or more of the common shares of the Corporation then outstanding.
Shareholders and purchasers of Rights should consult the Prospectus and their own legal and financial advisors to determine their rights and entitlements under the Offering.
Taiga intends to use the entirety of the net proceeds of the Offering for working capital purposes, including the reduction of the amount of indebtedness owing under its revolving credit facilities.
More detailed information is contained in the Prospectus available on SEDAR at www.sedar.com.
Forward-Looking Statements:
This press release contains certain forward-looking information and statements relating, but not limited, to future events or performance and strategies and expectations of Taiga. Forward-looking information typically contains statements with words such as "consider", "anticipate", "believe", "expect", "plan", "intend", "likely", "may", "will", "should", "predict", "potential", "continue" or similar words suggesting future outcomes or statements regarding expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Readers should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements.
These forward-looking statements reflect management's current expectations or beliefs and are based on information currently available to Taiga and although Taiga believes it has a reasonable basis for making the forward-looking statements included in this document, readers are cautioned not to place undue reliance on such forward-looking information. By its nature, the forward-looking information of Taiga involves numerous assumptions and inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts and other forward-looking statements will not occur. These factors include, but are not limited to, changes in business strategies; the effects of litigation, competition and pricing pressures; changes in operational costs; changes in laws and regulations, including tax, environmental, employment, competition, anti-terrorism and trade laws; and Taiga's anticipation of and success in managing the risks associated with the foregoing. A further description of these additional factors can be found in the periodic and other reports filed by Taiga with Canadian securities commissions and available on Sedar (http://www.sedar.com). These forward-looking statements speak only as of the date of this press release. Taiga does not undertake, and specifically disclaims, any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise, except as required by applicable law.