NORTH CHARLESTON, SC, Oct. 13, 2016 /CNW/ - The Article 6 Marital Trust created under the First Amended and Restated Jerry Zucker Revocable Trust dated 4-2-07 (the "Trust") announced today that it has exercised 3,238,500 common share purchase rights ("Rights") which were distributed by Colabor Group Inc. ("Colabor") (TSX: GCL) pursuant to a short form prospectus dated August 31, 2015. As a result of the exercise of the Rights, 8,787,452 commons shares of Colabor were acquired. Concurrently, pursuant to a Standby Purchase and Voting Support Agreement dated July 13, 2016 which the Trust and Z-Holdings North ULC, an affiliate of the Trust ("Z-Holdings" and together with the Trust, the "Zucker Group"), were parties, an additional 3,290,222 common shares of Colabor were acquired by the Zucker Group. Anita G. Zucker is the trustee of the Trust and a director of Z-Holdings.
In total 12,077,675 common shares were acquired by the Zucker Group which represents approximately 11.82% of the issued and outstanding common shares of Colabor.
Prior to the transactions, the Zucker Group owned 3,238,500 common shares and debentures in the principal amount of $1,313,000 which were convertible into 77,923 common shares. Together this represented approximately 12.03% of the issued and outstanding common shares of Colabor prior to Colabor's distribution of the Rights and the issuance of shares under the Standby Purchase and Voting Support Agreement.
As a result of the transaction, and the concurrent reduction in the conversion price of the convertible debentures which has been approved by the debenture holders, the Zucker Group owns or has the right to convert into, 15,841,175 common shares (comprised of 15,316,175 common shares and 525,000 common shares which may be received upon the conversion of the debentures), or approximately 15.43% of the issued and outstanding common shares of Colabor.
The common shares and debentures of Colabor were acquired for investment purposes. The Zucker Group may acquire additional common shares and/or debentures of Colabor, subject to price and availability.
SOURCE The Article 6 Marital Trust Created Under The Jerry Zucker Revocable Trust
For further information: Robert Johnston, 4838 Jenkins Avenue, North Charleston, South Carolina, 29405, (843) 744-5174