EnGlobe investors convert all class A debentures, series 1 preferreds

By Devika Patel

Knoxville, Tenn., Aug. 25 - EnGlobe Corp. said that holders of all $19.6 million of its class A convertible debentures due March 31, 2014 and its series 1 preferred shares have agreed to convert their securities into common shares.

The company will pay all accrued interest and dividends in cash. The holders agreed to convert the securities early to help strengthen the company's balance sheet. The company had indicated it would force conversation on Dec. 31.

The debentures will be converted into 60,566,176 shares, and the company will pay $2.23 million in cash to satisfy interest payments on the debentures.

The 10,296,250 preferreds will convert to 3,187,694 shares. Holders will receive $117,699 in accrued dividends, which also will be paid in cash.

Holders will also receive $247,912 in interest and $14,342 in dividends that would be due for the fourth quarter by March 31, 2011.

After this, the company will have 158,630,133 shares outstanding and no remaining class A convertible debentures or series 1 preferred shares.

EnGlobe is an international integrated environmental services company based in Burlington, Ont.

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