VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2013) - Arbutus Distributors Ltd. (the "Offeror") announces that it owns 311,000 common shares in Tree Island Steel Ltd. ("Tree Island"), representing approximately 1.33% of the total issued and outstanding common shares of Tree Island (the "Common Shares").
As of February 21, 2013, the Offeror continues to maintain ownership and control of its previously acquired CDN$4,014,400 principal amount of 10% second lien convertible debentures (the "Debentures"). The Debentures are convertible into 8,028,800 Common Shares of Tree Island, subject to anti-dilution adjustments. In addition, the warrants previously issued to the Offeror are exercisable into 1,125,000 Common Shares of Tree Island (the "Warrants").
After giving effect to the conversion of all Debentures and exercise of all Warrants, assuming that no other securityholder converts its convertible securities, the Offeror would own or control 9,464,800 Common Shares, representing approximately 28.92% of the 32,719,950 Common Shares that would then be outstanding on a fully diluted basis.
No additional consideration was tendered by the Offeror in connection with its ownership of the Common Shares, Debentures or Warrants.
The Common Shares in Tree Island were acquired as a result of Tree Island's conversion to a corporation from an income fund, and are held for investment purposes. The Offeror may increase or decrease its ownership position in the future.