LONDON, England, Sept. 23, 2014 /CNW/ - Leonardo Trust ("Leonardo"), an affiliate of Leo Fund Managers Limited, announced today that its wholly-owned subsidiary, Leonardo Global Trading Ltd., has entered into an agreement with Forsys Metals Corp. ("Forsys") to subscribe for 7,200,000 units ("Units") of Forsys on a private placement basis at a price of $0.25 per Unit for an aggregate purchase price of $1,800,000 (the "Private Placement"). Each Unit consists of one Class A Common Share (each a "Common Share") and one half of one Common Share purchase warrant (each, a "Warrant") that entitles the holder to acquire a new Common Share in Forsys at a price of $0.35 for a period of two years from the date of issue. The Private Placement is subject to the approval of the Toronto Stock Exchange.
Leonardo also announced today that its wholly-owned subsidiary, Leonardo Global Trading Ltd., has acquired 27,222,900 Common Shares of Forsys pursuant to a corporate reorganization and consolidation from two related entities for nil consideration. The Common Shares acquired by Leonardo represent approximately 23.01% of the outstanding Common Shares.
Leonardo's wholly-owned subsidiary also acquired today an additional 15,079,591 Common Shares (approximately 12.75% of the outstanding Common Shares) for nil consideration transferred as a result of a wind-up of a fund managed by Leo Fund Managers.
Following the completion of the transactions described above (and following completion of the Private Placement), Leonardo and its affiliates will have control and direction over 65,706,400 Common Shares and Warrants to acquire 3,600,000 Common Shares of Forsys. The Common Shares represent approximately 55.54% of the issued and outstanding Common Shares of Forsys.
Leonardo and its affiliates acquired the Common Shares and Warrants of Forsys for investment purposes. Leonardo and its affiliates may in the future, subject to regulatory constraints, take such actions in respect of their holdings of securities of Forsys as they may deem appropriate in light of the circumstances then existing, including the purchase of additional securities of Forsys through open market purchases or privately negotiated transactions or the sale of all or a portion of their securities of Forsys in the open market or in privately negotiated transactions to one or more purchasers.
SOURCE: Forsys Metals Corp.
For further information: R&H Trust Co. (Bermuda) Ltd on behalf of Leonardo Trust, Corner House, 20 Parliament Street, Hamilton HM12, PO Box HM 1475, Tel: +1 (441) 296 6771, Fax: +1 (441) 296 6778, Attention: James Brittland, [email protected]