Stone & Co. Limited

Stone & Co. Limited

January 18, 2007 15:40 ET

Stone Investment Group Limited Completes Initial Public Offering

TORONTO, ONTARIO--(CCNMatthews - Jan. 18, 2007) -

This press release is not for dissemination in the United States or for distribution to U.S. news wire services.

Stone Investment Group Limited ("SIG") announces that it has completed the closing of its initial public offering (the "Offering") on December 28, 2006 (the "SIG Closing Date") and raised gross aggregate proceeds of $12,000,000 representing 12,000 units of SIG (each a "Unit") at an offering price of $1,000 per Unit. Each Unit consists of one 9% senior secured debenture issued by SIG in the principal amount of $1,000 and 600 common share purchase warrants.

SIG used part of the net proceeds of the Offering: (a) to repay all of the outstanding indebtedness under certain debentures issued by Stone & Co. Limited ("SCL"), SIG's wholly-owned subsidiary, to VentureLink Financial Services Innovation Fund Inc. ("VentureLink"); and (b) to purchase for cancellation all outstanding common share purchase warrants issued by SCL to VentureLink. As at the SIG Closing Date, SCL's assets under management were $628,606,751. The balance of the net proceeds of the Offering is to be used by SIG and its subsidiaries for general corporate purposes.

SIG filed a final prospectus dated December 28, 2006 with the securities regulatory authorities in each of the provinces and territories of Canada other than Quebec to qualify for distribution up to 12,000 Units.

The Offering was sold by a syndicate of agents led by Wellington West Capital Inc., and includes Canaccord Capital Corporation, Research Capital Corporation, Burgeonvest Securities Limited and Queensbury Securities Inc.

SIG is a public holding company that principally carries on business through SCL and Stone Asset Management Limited ("SAM"). SCL and SAM each completed a reorganization to become wholly-owned subsidiaries of SIG immediately prior to the completion of the Offering. SCL is an independent fund company that provides management and administrative services to the various investment vehicles offered under the Stone brand since 1995 and will continue to do so following the Offering. SAM is registered as an investment counsel and portfolio manager in Ontario and acts as the investment advisor and/or a promoter of certain Stone investment funds since 1999.

This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to SIG's business and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on SIG's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in SIG's regulatory filings available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. SIG undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.

Contact Information

  • Stone Investment Group Limited
    Brian Edelstein
    Director, Investor Relations
    1-800-336-9528