/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
BRAMPTON, ON, Dec. 23, 2015 /CNW/ - On December 23, 2015 (the "Redemption Date"), DATA Group Ltd. (TSX: DGI) ("DATA Group" or the "Company") completed the previously announced redemption of $33,530,000 (or approximately 75%) of the $44,705,000 aggregate principal amount of its 6.00% convertible unsecured subordinated debentures due June 30, 2017 (the "Debentures") outstanding, on a pro rata basis.
On redemption, holders of Debentures redeemed received: (i) 29,086 common shares of the Company ("Common Shares") per $1,000 aggregate principal amount of Debentures redeemed, being equal to that number of Common Shares equal to the principal amount of Debentures redeemed on the Redemption Date divided by 95% of the volume-weighted average trading price of the Common Shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on December 16, 2015, (the "Redemption Price"); and (ii) approximately $28.93 per $1,000 aggregate principal amount of Debentures redeemed, by way of a cash payment equal to accrued and unpaid interest on the Debentures redeemed up to but excluding the Redemption Date, less any applicable withholding taxes.
As a result of the redemption of Debentures, an aggregate total of 975,262,140 new Common Shares were issued to holders of Debentures redeemed, and immediately following the redemption the Company has a total of 998,752,732 Common Shares outstanding.
This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The redemption of the Debentures was made only pursuant to the related notice of redemption.
About DATA Group Ltd.
DATA Group Ltd. is a managed business communications services Corporation specializing in customized document management and marketing solutions. DATA Group develops, manufactures, markets and supports integrated web and print-based communications, information management and direct marketing products and services that help its customers reduce costs, increase revenues, maintain brand consistency and simplify their business processes. DATA Group's expertise and resources enable it to address any document requirement of its customers, from a simple mail-out to an enterprise-wide document management or direct marketing initiative. We have approximately 1,435 employees working from 26 locations across Canada and the United States to accomplish this.
Additional information relating to DATA Group Ltd. is available on www.datagroup.ca, and in the disclosure documents filed by DATA Group Ltd. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DATA Group, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. When used in this press release, words such as "may", "would", "could", "will", "expect", "anticipate", "estimate", "believe", "intend", "plan", and other similar expressions are intended to identify forward-looking statements. These statements reflect DATA Group's current views regarding future events and operating performance, are based on information currently available to DATA Group, and speak only as of the date of this press release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DATA Group to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward-looking statements. The principal factors, assumptions and risks that DATA Group made or took into account in the preparation of these forward-looking statements include the fact that DATA Group was required to issue a large number of Common Shares to satisfy a portion of the total redemption price payable upon redemption of the Debentures, which has significantly diluted existing shareholders' interests in DATA Group, materially increased the number of outstanding Common Shares and will likely have an adverse effect on the trading price of the Common Shares; the risk that DATA Group may not be successful reducing the size of its legacy print business, reducing costs, reducing or refinancing its long-term debt and growing its digital communications business; the risk that DATA Group may not be successful in managing its organic growth; DATA Group's ability to invest in, develop and successfully market new products and services; competition from competitors supplying similar products and services; DATA Group's ability to grow its sales or even maintain historical levels of its sales of printed business documents; the impact of economic conditions on DATA Group's businesses; risks associated with acquisitions by DATA Group; increases in the costs of paper and other raw materials used by DATA Group; and DATA Group's ability to maintain relationships with its customers. Additional factors are discussed elsewhere in this press release and under the heading "Risks and Uncertainties" in DATA Group's management's discussion and analysis and in DATA Group's other publicly available disclosure documents, as filed by DATA Group on SEDAR (www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, DATA Group does not intend and does not assume any obligation to update these forward-looking statements.
SOURCE DATA Group Ltd.
For further information: Mr. Michael G. Sifton, President and Chief Executive Officer, DATA Group Ltd., Tel: (905) 791-3151; Mr. James Lorimer, Chief Financial Officer, DATA Group Ltd., Tel: (905) 791-3151