TORONTO, March 3, 2014 /CNW/ - Takota Asset Management Inc. ("Takota") announced today that on March 1, 2014, Takota Premium Value Limited Partnership LP (the "Fund"), an investment fund managed by Takota, acquired an unsecured demand note (the "Note") in the principal amount of $200,000 from Groupe Bikini Village inc. (the "Issuer"). The Note will mature at the latest on May 29, 2014 (the "Maturity"). The Note will bear interest at an annual rate of 6%, which is payable, along with any outstanding principal, at Maturity. Interest on the Note may be paid by the Issuer either in cash or in common shares of the Issuer at a price equal to the volume weighted average price of the Issuer's common shares on the Toronto Stock Exchange for the five preceding trading days.
The Note is convertible into common shares of the Issuer by its holder if the Issuer defaults on repayment of the Note. In such circumstances, the Note will be convertible into common shares of the Issuer at a price equal to the volume weighted average price of the Issuer's common shares on the Toronto Stock Exchange for the five preceding trading days. The conversion of the Note is subject to the approval by the Toronto Stock Exchange. In all cases, the Issuer has the option to prepay the Note, in whole or in part, before Maturity. It is not currently possible to determine the number of common shares of the Issuer into which the Note could be converted (or which could be issued as payment of interest thereunder) given the approval required by the Toronto Stock Exchange and possible future market price fluctuations.
Takota exercises control and direction over 329,687 common shares of the Issuer, representing approximately 17.24% of the Issuer's outstanding common shares. The common shares are held by certain managed accounts and by the Fund (collectively, the "Accounts") in respect of which Takota acts as investment manager.
The Note was acquired by private placement in reliance on the exemption from the prospectus requirement under section 2.10 of National Instrument 45-106 by virtue of satisfying the criteria set forth therein. The Note was acquired by the Fund for investment purposes and to assist the Issuer in meeting short-term cash requirements. All securities of the Issuer over which Takota exercises control and direction are being held for investment purposes. Depending on market and other conditions, Takota may, from time to time, increase or decrease its ownership, control and direction over securities of the Issuer.
The issuance of this news release is not an admission that any person or entity named herein is a joint actor with any other person or entity so named.
SOURCE: Takota Asset Management Inc.
For further information:
For further information or a copy of the report filed under National Instrument 62-103, please contact:
W. Scott Leckie, CFA
Principal, Portfolio Manager
Takota Asset Management Inc.
8 Price Street, 3rd Floor Toronto, Ontario M4W 1Z4
Telephone: (416) 363-3050
Fax: (416) 368-4330