Alamos Gold gets consent to early conversion offer for 5.5% convertibles

By Jennifer Chiou

New York, May 30 - Alamos Gold Inc. said it received approval from holders of its 5.5% convertible unsecured subordinated debentures due 2010 to amend the terms of the convertibles, allowing a 21-day period during which holders will receive a premium for early conversion.

Between 9 a.m. on June 1 and 5 p.m. on June 22, holders will be entitled to receive a premium of C$3.00 per C$100 principal amount of convertibles as an incentive to convert as well as additional shares in an amount to be determined after the incentive period.

The number of shares will be based on the last date of the incentive conversion period and the volume-weighted average trading price of the common shares for the last five trading days of the incentive conversion period. The number ranges from 6.3846 additional shares at a volume-weighted average trading price of C$3.96 to 0.3871 additional shares at a volume-weighted average trading price of C$25.00.

As previously announced, debenture holders will receive 18.86792 common shares of Alamos Gold for each C$100 principal amount of debentures that they convert.

Shares of the Toronto-based gold exploration stock closed at C$9.14 on Tuesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.