TORONTO, May 25, 2011 /CNW/ - General Donlee Canada Inc. ("General
Donlee" or the "Company") (TSX: GDI) today announced that the record
date (the "Record Date") for the proposed division of the Company's
common shares on a two-for-one basis (the "Stock Split") has been set
at May 31, 2011. At the close of business on the Record Date, each
shareholder of record will receive one additional common share for each
common share he or she holds. As the Company's common shares trade in
the book-entry only system of CDS Clearing and Depository Services
Inc., accounts of common shareholders of record on the Record Date will
be automatically adjusted to reflect the Stock Split.
The Company's common shares will commence trading on the Toronto Stock
Exchange on a split basis at the opening of business on Friday, May 27,
2011, which is the second trading day preceding the Record Date.
The Stock Split will result in an adjustment of the conversion price of
the 7.0% convertible unsecured subordinated debentures due June 30,
2014. Pursuant to the terms of the indenture dated June 20, 2007, the
conversion price of the debentures will be reduced in half from $13.10
to $6.55. As a result, the number of common shares issuable on the
conversion of each $1000 in debentures will increase from approximately
76.336 common shares to 152.672 common shares.
General Donlee anticipates that the Stock Split will make the Company's
stock more accessible to shareholders and should enhance the trading
liquidity of the common shares. The Company currently has approximately
5.33 million shares outstanding which subsequent to the Stock Split
will double to approximately 10.66 million shares outstanding. Future
dividends will reflect the two-for-one share split. At the close of
business yesterday, the price of a General Donlee common share on the
Toronto Stock Exchange was $7.22.
About General Donlee Canada Inc.
General Donlee Canada Inc. is a leading diversified manufacturer of
precision-machined products for the military, commercial and general
aerospace industries, and a specialist in the manufacture of
precision-machined products for the industrial products and power
generation industries. General Donlee's operating strategy focuses on
targeting niche markets for products that are aligned with its
sophisticated manufacturing capabilities and skilled workforce.
Forward Looking Statements
Certain forward-looking statements contained in this news release are
based on information, currently available to management, but are
subject to a number of uncertainties and risks that could cause actual
results to differ materially from the results discussed in the
forward-looking statements. Further information can be found in the
disclosure documents filed by General Donlee Canada Inc. with the
securities regulatory authorities, available at www.sedar.com or through the Company's website at www.generaldonlee.com.
SOURCE General Donlee Canada Inc.
For further information:
Garen Mikirditsian, Chief Financial Officer
Telephone: (416) 743-4417
Web site: www.generaldonlee.com