TORONTO, May 5 /CNW/ - On May 4, 2010, the principal amount of a previously outstanding $250,000 convertible debenture issued by VRX Worldwide Inc. ("VRX"), maturing May 4, 2010, and held in client accounts managed by Silver Heights Capital Management Inc. ("Silver Heights"), was rolled-over into a new $250,000 convertible debenture (the "New Debenture"). The New Debenture matures May 4, 2013. Other terms and conditions are unchanged.
The exact number of common shares issuable by VRX upon conversion of the New Debenture is not determinable, given the fact that the conversion price of the New Debenture may vary over time. The maximum number of common shares receivable on conversion is 1,000,000. These 1,000,000 common shares would represent approximately 2.8% of the outstanding common shares of VRX, based on conversion of the New Debenture and 34,626,145 common shares currently outstanding.
Silver Heights acts as an investment manager on behalf of client accounts, and specifically disclaims any beneficial ownership of the securities of VRX.
Following the roll-over into the New Debenture, and assuming the issuance by VRX of common shares receivable on conversion of the New Debenture, client accounts managed by Silver Heights would own up to 6,913,500 common shares of VRX, representing approximately 19.4% of the outstanding common shares of VRX based on conversion of the New Debenture and 34,626,145 common shares currently outstanding. These figures are unchanged from prior to the roll-over.
The roll-over into the New Debenture took place by way of a private placement under the laws of the Provinces of Alberta and Ontario.
The New Debenture is held for investment purposes only and not with the purpose of influencing the control or direction of VRX. Silver Heights and/or any of its joint actors may in the future take such actions in respect of their securityholdings in VRX as they may deem appropriate in light of the circumstances then existing, including increasing or decreasing their respective holdings.
Silver Heights will be filing an Early Warning Report.
SOURCE SILVER HEIGHTS CAPITAL MANAGEMENT
For further information: For further information: Kevin Kuebler, Telephone: (416) 342-5625, Silver Heights Capital Management Inc., 90 Adelaide St. West - Suite 400, Toronto, ON M5H 3V9