MONTREAL, June 10, 2011 /CNW Telbec/ - MEGA Brands Inc. (TSX: MB)
announced today the completion of its previously announced share
consolidation on the basis of one (1) new post-consolidation common
share for every twenty (20) pre-consolidation common shares issued and
outstanding. The share consolidation was approved at the Corporation's
Annual and Special Meeting held on June 10, 2010, and has been accepted
by the TSX. It is anticipated that the Corporation's common shares will
commence trading on a consolidated basis on the Toronto Stock Exchange
when the market opens on June 15, 2011.
As a result of the consolidation, the Corporation will have
approximately 16,363,661 issued and outstanding common shares.
New Share Certificates
The Corporation's Transfer Agent, CIBC Mellon Trust Company, will
shortly mail letters of transmittal to registered shareholders
indicating the procedure to follow in order to exchange their current
share certificates for new post-consolidation share certificates.
Shareholders who hold their shares in ''street name'' will be contacted
by their banks or brokers with any instructions.
Information for Warrant Holders
The number of warrants issued and outstanding remains unchanged at
243,844,000. Warrant holders will be able to acquire one (1) new
post-consolidation common share in exchange for every twenty (20)
warrants at an exercise price of $9.94 per common share at any time
until March 30, 2015. The adjustment to the exercise price of the
warrants reflects the terms of the warrant indenture.
Full exercise of the issued and outstanding warrants will result in the
issuance of 12,192,200 common shares for gross proceeds of
approximately CA$121.2 million. Under the terms of the warrant
indenture, such proceeds will be used to purchase the Corporation's
debentures, of which the principal amount currently outstanding is
approximately CA$121.7 million.
About MEGA Brands
MEGA Brands Inc. is a trusted family of leading global brands in
construction toys, games & puzzles, arts & crafts and stationery. They
offer engaging creative experiences for children and families through
innovative, well-designed, affordable and high-quality products. Visit http://www.megabrands.com for more information.
The MEGA logo, Mega Bloks, Rose Art, MEGA Puzzles, MEGA Games and Board
Dudes are trademarks of MEGA Brands Inc. or its affiliates.
SOURCE MEGA BRANDS INC.
For further information:
Chief Financial Officer
Tel: (514) 333-5555 ext. 2283