VANCOUVER, Nov. 30 /CNW/ - Arbutus Distributors Ltd. ("Arbutus") announced today that, in connection with the private placement completed by Tree Island Wire Income Fund (the "Fund") on November 26, 2009 (the "Private Placement"), it has acquired C$2,250,000 principal amount of 10% second lien convertible debentures (the "Debentures"), exercisable into 4,500,000 trust units of the Fund ("Units") subject to anti-dilution adjustments. In addition, in connection with the Private Placement, the Fund has issued to Arbutus warrants to acquire 1,125,000 Units, at an exercise price of C$0.50 per Unit, on or before November 26, 2014 (the "Warrants").
After giving effect to the conversion of all Debentures and exercise of all Warrants, assuming that no other securityholder converts its convertible securities, Arbutus would own or control 5,650,000 Units, representing approximately 20.4% of the 27,737,489 Units that would then be outstanding on a fully diluted basis. Assuming the conversion and exercise of all of the Fund's outstanding debentures and warrants issued under the Private Placement, Arbutus' holdings would represent approximately 12.2% of the outstanding Units of the Fund.
Arbutus has acquired these securities for investment purposes. Depending on market and other conditions, Arbutus may, from time to time, increase or decrease its ownership, control or direction over the Debentures, Warrants or other securities of the Fund.
SOURCE ARBUTUS DISTRIBUTORS LTD.
For further information: For further information: (including a copy of the report to be filed with Canadian securities regulators in connection with this acquisition) can be obtained by contacting: Peter M. Bull, President, Arbutus Distributors Ltd., Phone: (604) 682-2911