TORONTO, July 8, 2014 /CNW/ - Orion announced today that Orion
Co-Investments I LLC ("Orion Equity Co-Invest"), a company managed by Orion, acquired ownership of an aggregate of
181,529,455 common shares of Stornoway Diamond Corporation ("Stornoway"), representing approximately 24.8% of Stornoway's currently
outstanding common shares (the "Common Shares"). Orion Equity Co-Invest acquired such Common Shares pursuant to the
exchange of its 171,254,203 subscription receipts and the issuance of
10,275,252 placement fee shares, all as more particularly described in Orion's
press release and early warning report filed on May 23, 2014.
Additionally, Orion announced today that Orion Co-Investments I
(Convert) LLC (Orion Convert Co-Invest), a company managed by Orion, purchased US$20,500,000 aggregate
principal amount of convertible debentures of Stornoway (the "Convertible Debentures"), which are convertible at any time prior to maturity on July 8, 2021
at a conversion rate of US$0.8863. Assuming conversion of its
Convertible Debentures, Orion would hold an aggregate of 204,659,320
Common Shares, representing approximately 27.1% of the then outstanding
The Common Shares were issued to Orion Equity Co-Invest pursuant to the
exchange of previously issued Subscription Receipts and the Placement
Fee Shares were issued to Orion Equity Co-Invest by way of private
placement for no additional consideration. Please see Orion's prior
press release and early warning report filed May 23, 2014 for a
description of the consideration paid for the Subscription Receipts.
The Convertible Debentures were issued to Orion Convert Co-Invest by way
of private placement at a price of US$960 per US$1,000 principal amount
of Convertible Debentures for an aggregate purchase price of
US$19,680,000. Based on the Bank of Canada's published noon rate of
exchange on July 7, 2014, the foregoing amounts are equal to C$1,023.55
per US$1,000 principal amount of Convertible Debenture for aggregate
proceeds of C$20,982,816.
Orion has acquired the securities of Stornoway for investment purposes.
Orion has no current plan or proposal which relates to, or would result
in, acquiring additional ownership or control over the securities of
Stornoway. Depending on market conditions, Orion's view of Stornoway's
prospects and other factors considered relevant by Orion, Orion may
acquire additional securities of Stornoway from time to time in the
future, in the open market or pursuant to privately negotiated
transactions, or may sell all or a portion of its securities of
Orion's address is Canon's Court, 22 Victoria Street, Hamilton, Bermuda
HM12. For further information please refer to the Early Warning Report
posted on SEDAR or contact Jeffrey T. Kechejian at (212) 596-3474.
Certain statements in the press release are forward-looking statements
and are prospective in nature, including statements with respect to
Orion's future intentions regarding the securities of Stornoway.
Forward-looking statements are not based on historical facts, but
rather on current expectations and projections about future events, and
are therefore subject to risks and uncertainties which could cause
actual results to differ materially from the future results expressed
or implied by the forward-looking statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Such forward-looking statements should
therefore be construed in light of such factors, and Orion is not under
any obligation, and expressly disclaims any intention or obligation, to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
SOURCE: Orion Mine Finance Management I Limited
For further information:
please refer to the Early Warning Report posted on SEDAR or contact Jeffrey T. Kechejian at (212) 596-3474.