Trading Symbol: VPI
VANCOUVER, Oct. 1, 2014 /CNW/ - Vitality Products Inc. ("Vitality" or the "Company") has issued a total of 5,980,000 common shares in the capital of the Company to Consolidated Firstfund Capital Corp. ("Firstfund") pursuant to the automatic conversion of 46,000 Class "A" Preference Shares, Series 6 (the "Preference Shares"), at a deemed value of $10.00 per Preference Share in the capital of the Company, plus all unpaid dividends accrued thereon to the date of conversion, at the conversion price of $0.10 per common share.
The Preference Shares were converted by the Company into common shares in the capital stock of Vitality on September 30, 2014, the end of the five year conversion period. The Preference Shares were non-voting and had a 6% cumulative dividend payable annually accruing from October 1, 2009 to September 30, 2014. The decision to pay cumulative dividends totalling $138,000 payable in common shares of Vitality in lieu of cash pursuant to the outstanding Preference Shares was approved by a majority of members of Vitality's board of directors who are not directors of Firstfund.
The 5,980,000 common shares in the capital of Vitality acquired by Firstfund represent 23.12% of the outstanding common shares of Vitality. Firstfund, through either direct ownership or indirect ownership, beneficially owns 7,008,671 or 27.09% of the issued and outstanding common shares of Vitality.
The conversion of the Preference Shares does not affect the direct holdings of the Estate of William Neil Grant (the "Estate"), which is currently 4,492,563 common shares of Vitality, but does affect its indirect holdings to the extent described above, since the Estate is a control person of Firstfund.
W. Douglas Grant is an Executor of the Estate. Robert H. Grant, W. Douglas Grant, Bruce J. McDonald and Stuart E. Pennington are directors of both Vitality and Firstfund.
Upon the completion of the conversion, the Company has 25,867,285 common shares outstanding and no Class "A" Preference shares, Series 6 outstanding.
On behalf of the Board of
VITALITY PRODUCTS INC.
"W. Douglas Grant" (signed)
W. Douglas Grant, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Vitality Products Inc.
For further information: W. Douglas Grant, President & CEO at (604) 683-6611 or [email protected]