TORONTO, May 26, 2014 /CNW/ - On May 23, 2014, Geosam Capital Inc. ("Geosam") acquired 842,075 common shares of Holloway Lodging Corporation ("Holloway") at a price of $4.24 per common share, representing 4.7% of the outstanding common shares of Holloway. Immediately after the transaction, Geosam owns 6,107,529 common shares and 26,250 warrants to acquire common shares. On an as converted basis, such securities represent an aggregate of 34.2% of the common shares.
Geosam purchased the securities through the facilities of Pure Trading for investment purposes. Geosam may acquire additional securities of Holloway, dispose of some or all of the existing or additional securities of Holloway, or continue to hold securities of Holloway in the normal course of Geosam's investment activities.
In purchasing the 842,075 common shares referred to in (b) above, Geosam relied on the private agreement exemption from the formal take-over bid rules set out in Section 100.1(1) of the Securities Act (Ontario). Geosam was entitled to rely on this exemption because (i) the purchase of the 842,075 common shares was not made from more than five persons, (ii) the offer to purchase was not made generally to all holders of Holloway's common shares, and (iii) the value of the consideration paid for the 842,075 common shares, including brokerage fees or commissions, was not greater than 115% of the market price of Holloway's common shares on the Toronto Stock Exchange on May 23, 2014 as determined in accordance with Section 1.3 of Ontario Securities Commission Rule 62-504 – Takeover Bids and Issuer Bids.
SOURCE: Geosam Capital Inc.
For further information: Michael Rapps, Simpson Tower, 401 Bay Street, Suite 2704, Toronto, ON M5H 2Y4, t: (416) 855-1925, f: (416) 640-1834