QUEBEC CITY, Aug. 25 /CNW/ - EnGlobe Corp. ("EnGlobe"
or the "Corporation") (TSX: EG) today
announced that holders of EnGlobe's existing Class "A" convertible
debentures (the "Debentures") and Series 1 preferred shares (the
"Preferred Shares") (collectively the "Units") have agreed to the early
conversion of the Units into common shares of the Corporation. Subject
to Toronto Stock Exchange acceptance, the Corporation and holders of the
$19.6 million of Debentures maturing on March 31, 2014, and the
outstanding Preferred Shares have agreed to convert the Units into
common shares and to receive payment of all accrued interest and
dividends in cash. The holders have agreed to convert the Units early
to facilitate the strengthening of the Company's balance sheet and in
light of the Corporation indicating its intension to force conversation
as at December 31, 2010 as per the legal provisions of the Units.
The conversion of the Units will occur concurrently with the end of the
third quarter of fiscal year 2010. As of September 30, 2010, the
Corporation will owe $19.6 million in principal amount of Debentures,
which will be converted into 60,566,176 common shares of the
Corporation, and $2,226,374 in interest on the Debentures, which will be
paid in cash. The holders of the 10,296,250 Preferred Shares (principle
amount of $1,029,625), which were issued concurrently with the
Debentures, will convert the Preferred Shares to 3,187,694 common
shares, and are owed $117,699 in accrued dividends, which will be paid
in cash. In addition, in exchange for converting the Units to common
shares early, the holders of the Units will receive cash payment of the
interest and dividends that would be due for the fourth quarter of
fiscal year 2010. This additional interest and dividend payment will
amount to $247,912 and $14,342 respectively, which will be paid no later
than March 31, 2011.
After giving effect to the conversion of the Units, the Corporation will
have 158,630,133 common shares outstanding and no remaining Class A
convertible debentures or Series 1 preferred shares. The conversion is
subject to the usual regulatory approval, including approval by the
Toronto Stock Exchange.
About EnGlobe Corp.
EnGlobe Corp. is a leading international integrated environmental
services company specializing in the management of contaminated soils
and organic based waste streams, with an emphasis on beneficial reuse.
EnGlobe offers cost-effective solutions to municipal, commercial and
industrial clients in Canada, the north-eastern United States, the
United Kingdom and France through its divisions and subsidiaries:
Biogénie, Biogénie Europe SAS, Biogénie Site Remediation Limited and
Celtic Technologies Limited for site assessment and remediation, GSI
Environment Inc. for organic waste management, and Tanknology Canada
Inc. for tank testing and calibration. Shares of EnGlobe trade on the
Toronto Stock Exchange under the ticker symbol EG. Additional
information is available at www.englobecorp.com.
This press release contains certain forward-looking statements. Such
statements relate to, among other things, sales growth, expansion and
growth of the Corporation's business, future capital expenditures and
the Corporation's business strategy. Forward-looking statements are
subject to inherent uncertainties and risks including, but not limited
to: general industry and economic conditions, changes in the
Corporation's relationships with its suppliers, pricing pressures and
other competitive factors, the availability and costs of fuels and
utilities, the results of the Corporation's ongoing efforts to improve
cost effectiveness, changes in regulatory requirements affecting the
Corporation's business and the availability and terms of financing.
Other Risk Factors are set out and described in the Corporation's Annual
Information Form which is available at www.sedar.com. Consequently,
actual results and events may vary significantly from those included in,
contemplated by or implied by such forward-looking statements. In
evaluating forward-looking statements, readers should specifically
consider the various factors that could cause actual events or results
to differ materially from such forward-looking statements.
SOURCE ENGLOBE CORP.
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