OTTAWA, Feb. 25 /CNW Telbec/ - SC Stormont Holdings Inc. ("Stormont" or
the "Company") which is located at 1145 Innovation Drive, Kanata Ontario K2K
3G8 today announced it is exercising its right of conversion of PharmaGap
Convertible Secured Debentures (the "Debentures") held by it.
The total principal and interest owed to Stormont pursuant to the
Debentures as at the conversion date of February 25, 2009 is $4,116,556, which
converted according to terms of the Debentures into 31,325,150 PharmaGap
common shares and 7,258,742 warrants to purchase PharmaGap common shares at
prices ranging from $0.195 to $0.2625. 4,993,383 of these warrants will expire
on February 26, 2009 and are not expected to be exercised.
Following conversion, there are 77,079,124 PharmaGap common shares
outstanding, of which Stormont holds 33,998,012, or 44.1%.
Assuming exercise of all outstanding warrants following conversion of the
Debentures, there would be 96,249,106 common shares outstanding, of which
Stormont would then hold approximately 41,246,754, or 42.9%.
Assuming the warrants expiring on February 26, 2009 are not exercised but
that all remaining warrants are exercised, there would be 91,255,723 common
shares outstanding, of which Stormont would then hold 36,253,371, or 39.7%.
Stormont is holding the PharmaGap securities for investment purposes.
Depending on market and other conditions, Stormont may from time to time in
the future increase or decrease its ownership, control or direction over
PharmaGap common shares or other PharmaGap securities through market
transactions, private agreements or otherwise.
A report regarding this transaction has been filed on SEDAR and may be
viewed at www.sedar.com. The report may also be obtained by contacting Robert
C. McInnis, Executive Vice-President of Stormont, at 613-287-3125.
The issuance of this news release is not an admission that an entity
named in the news release owns or controls any described securities or is a
joint actor with another named entity.
For further information:
For further information: Robert C. McInnis, Executive Vice-President of
Stormont, (613) 287-3125