TORONTO, Jan. 2, 2019 /CNW/ - Acasta Enterprises Inc. (TSX:AEF) ("Acasta" or the "Corporation") has confirmed that, pursuant to the terms of the Amended and Restated Forfeiture Conditions and Transfer Restrictions Agreement and Undertaking (the "Forfeiture Agreement") entered into on January 3, 2017, an aggregate of 5,221,020 Class B Shares, held by the original founders of Acasta and certain transferees, will be forfeited and cancelled by the Corporation for no consideration. This forfeiture and cancellation will reduce Acasta's outstanding share count to 64,994,278 Class B Shares.
These Class B Shares ("Founders Shares") were issued to the original founders of Acasta prior to its initial public offering on July 22, 2015 and were acquired from treasury for consideration of $0.0024 per share. Each of the original founders and their permitted transferees became parties to the Forfeiture Agreement and are subject to its terms. Pursuant to the terms of the Forfeiture Agreement, 50% of the Founders Shares are non-transferable in most cases and are forfeited to Acasta in the event that the Corporation fails to: i) secure commitments of $1 billion for its private equity fund; and ii) achieve a Consumer Products Value Realization Event (as defined in the Forfeiture Agreement), prior to January 3, 2019. As neither of these conditions have been achieved and will not be achieved by January 3, 2019, Acasta is taking steps to ensure that the required number of Founders Shares are forfeited in accordance with the Forfeiture Agreement and is following up with the relevant shareholders in this regard.
SOURCE Acasta Enterprises Inc.
For further information: Acasta Enterprises Inc., Lawrence Wilder, 1-416-597-6762, Corporate Secretary, www.acastaenterprises.com