MONTRÉAL, June 25, 2014 /CNW/ - Diaquem Inc. ("Diaquem"), a wholly-owned subsidiary of Investissement Québec, announces that it has acquired 22,543,918 common shares ("Stornoway Common Shares") in the capital of Stornoway Diamond Corporation ("Stornoway") as a result of the conversion of all of the 22,543,918 non-voting convertible shares of Stornoway that it held.
Diaquem now holds (i) 58,048,655 Stornoway Common Shares, and (ii) warrants to purchase 3,750,000 Stornoway Common Shares. In addition, Ressources Québec Inc. ("RQ"), another wholly-owned subsidiary of Investissement Québec, holds (as mandatary for the Province of Québec) 142,857,142 subscription receipts of Stornoway which will (assuming that various escrow release conditions have been satisfied or waived, as detailed in Stornoway's press release of May 23, 2014) be exchanged for 142,857,142 Stornoway Common Shares. Upon such conversion, RQ is also to be issued a further 8,571,428 Stornoway Common Shares in satisfaction of certain fees.
After giving effect to (i) the issue to RQ of the 142,857,142 Stornoway Common Shares issuable upon exchange of the subscription receipts referred to above and the further 8,571,428 Stornoway Common Shares to be issued to RQ at such time and (ii) the issue of the aggregate of 403,443,740 Stornoway Common Shares issuable to other parties under or in connection with Stornoway's public and private placement offerings of subscription receipts (but not the exercise, exchange or conversion of the other convertible securities of Stornoway), RQ (as mandatary for the Government of Québec) and Diaquem would, in aggregate, exercise control and direction over approximately 28.7% of the issued and outstanding Stornoway Common Shares. Further, taking into account the 3,750,000 Stornoway Common Shares issuable upon exercise by Diaquem of the warrants that it holds, RQ (as mandatary for the Government of Québec) and Diaquem would, in aggregate, exercise control and direction over approximately 29% of the issued and outstanding Stornoway Common Shares. These percentages are unchanged from the May 27, 2014 announcement by RQ that it had acquired the subscription receipts referred to above.
These Stornoway Common Shares were acquired by Diaquem for investment purposes.
About Investissement Québec
Investissement Québec's mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. It offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.
For additional information, or to obtain a copy of the report required pursuant to the early warning reporting requirements, please contact:
Ressources Québec Inc.
600 De la Gauchetière Street West
SOURCE: Diaquem Inc.
For further information: Marie-Eve Savard, Spokesperson, Investissement Québec, 514 876-9412