MONTREAL, QUÉBEC--(Marketwired - July 19, 2016) - Abderraouf Ghali announces that on July 13, 2016, he acquired, directly or indirectly, 163.083 secured convertible notes (the "Notes") of Argex Titanium Inc. (TSX:RGX) (the "Corporation" or "Argex") at a price of $1,000 per Note, for an aggregate dollar amount of $163,083, pursuant to a private placement by Argex (the "Offering").
Each of the Notes is convertible at the option of the holder into 33,333 common shares ("Shares") and 28,333 common share purchase warrants ("Warrants") of the Corporation. Each of the Warrants entitles the holder to acquire one additional Share at a price of $0.05 over a five-year term.
As a result, the Notes held by Mr. Ghali are convertible into a total of 5,436,045 Shares and 4,620,630 Warrants, each of which entitles the holder to acquire one additional Share.
The Corporation also issued 7,456,667 additional Warrants to Mr. Ghali, representing a fee in an amount equal to 10% of the number of Shares issuable upon conversion of the Notes issued by the Corporation pursuant to the Offering.
Immediately prior to the closing of the Offering, Abderraouf Ghali did not hold any Shares. Immediately after the closing of the Offering, Abderraouf Ghali holds, directly or indirectly, 163.083 Notes in an aggregate dollar amount of $163,083, convertible into a total of 5,436,045 Shares and 4,620,630 Warrants, and 7,456,667 additional Warrants. Each of the Warrants entitles the holder to acquire one additional Share.
Assuming the conversion of the Notes held by Mr. Ghali and the exercise of the Warrants, Mr. Ghali would hold, directly or indirectly, 17,513,342 Shares, representing approximately 10.30% of the Shares that would then be issued and outstanding.
Mr. Ghali acquired ownership of the Notes pursuant to the Offering and acquired ownership of the 7,456,667 additional Warrants following their issuance by the Corporation. The Notes were issued at a price of $1,000 per Note.
In accordance with applicable securities laws, Mr. Ghali may, from time to time and at any time, acquire additional Shares and/or other equity, debt or other securities or instruments (collectively, "Securities") of the Corporation in the open market or otherwise, and he reserves the right to dispose of any or all of his Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of the Corporation and other relevant factors.
A copy of an early warning report filed by Mr. Ghali in connection with the Offering is available on SEDAR under the Corporation's profile. This news release is issued under the early warning provisions of Canadian securities legislation.
To obtain a copy of the early warning report filed by Abderraouf Ghali, please contact:
Corporate Communications and Investor Relations
Argex Titanium Inc.