Pender International Inc. ("Pender" or the "Company")
(OTCBB:PNDR), on April 13, executed and closed an agreement for a
$250 million equity line of credit pursuant to previously announced
negotiations.
The terms of the agreement permit the drawdown of funds upon five days notice, on an as needed basis by Pender. Each drawdown amount is to be converted into registered common shares at a conversion price of not less than $4.00 per share. The agreement is non-cancelable and provides the syndicate with first right of refusal on all financing required by the Company up to $250 million. If the equity line is fully drawn, Pender will be required to issue approximately 62.5 million shares.
The funding for the equity line of credit will be provided by a syndicate of private and institutional investors which include the Platinum Group Ltd., Saratoga Consulting Inc., SRG Group Ltd., Universal Inc., and Vailcap Consulting Inc. The five participants in the Syndicate will provide funds on an equal basis for each drawdown.
The funds provided through the equity line of credit will be used to fund the development of existing projects under development, general working capital, and the acquisition of new projects.
Chairman Kalson G.H. Jang commented that "this financing agreement provides the Company with substantial funds availability to expedite and maximize the potential of our existing projects, and provides the Company with the flexibility to undertake new investments. The terms of this agreement along with the potential of our existing projects will enable the Company to create substantial future shareholder value."
Pender International Inc., located in Markham, Ontario, Canada operates as a merchant bank for small to medium-sized undervalued companies that require capital for growth or financial restructuring. In addition Pender provides experienced, highly qualified senior management in support of existing management of investee companies. Investment instruments include subordinate debt with warrants or conversion privileges and equity securities. Pender will invest in management and leveraged buy-outs, recapitalizations and financial restructurings, mezzanine financings and the purchase of real estate portfolios. To date, Pender has completed, or committed capital to concerns engaged in real estate and resort ownership and development, and gold mining located in Canada and Mexico. Pender's investment strategy is driven by the quality of underlying asset values, realizable upside potential, the potential to add substantial value and the timing of value realization, and is not limited by industry or geography. Additional information about the Company is available at www.penderinternationalinc.com.
Certain statements in this press release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to safe harbor created by those rules, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The Company cautions that these forward-looking statements are further qualified by other factors. The Company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
The terms of the agreement permit the drawdown of funds upon five days notice, on an as needed basis by Pender. Each drawdown amount is to be converted into registered common shares at a conversion price of not less than $4.00 per share. The agreement is non-cancelable and provides the syndicate with first right of refusal on all financing required by the Company up to $250 million. If the equity line is fully drawn, Pender will be required to issue approximately 62.5 million shares.
The funding for the equity line of credit will be provided by a syndicate of private and institutional investors which include the Platinum Group Ltd., Saratoga Consulting Inc., SRG Group Ltd., Universal Inc., and Vailcap Consulting Inc. The five participants in the Syndicate will provide funds on an equal basis for each drawdown.
The funds provided through the equity line of credit will be used to fund the development of existing projects under development, general working capital, and the acquisition of new projects.
Chairman Kalson G.H. Jang commented that "this financing agreement provides the Company with substantial funds availability to expedite and maximize the potential of our existing projects, and provides the Company with the flexibility to undertake new investments. The terms of this agreement along with the potential of our existing projects will enable the Company to create substantial future shareholder value."
Pender International Inc., located in Markham, Ontario, Canada operates as a merchant bank for small to medium-sized undervalued companies that require capital for growth or financial restructuring. In addition Pender provides experienced, highly qualified senior management in support of existing management of investee companies. Investment instruments include subordinate debt with warrants or conversion privileges and equity securities. Pender will invest in management and leveraged buy-outs, recapitalizations and financial restructurings, mezzanine financings and the purchase of real estate portfolios. To date, Pender has completed, or committed capital to concerns engaged in real estate and resort ownership and development, and gold mining located in Canada and Mexico. Pender's investment strategy is driven by the quality of underlying asset values, realizable upside potential, the potential to add substantial value and the timing of value realization, and is not limited by industry or geography. Additional information about the Company is available at www.penderinternationalinc.com.
Certain statements in this press release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to safe harbor created by those rules, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The Company cautions that these forward-looking statements are further qualified by other factors. The Company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.