VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 24, 2014) - Arbutus Distributors Ltd. ("Arbutus") announces that on January 23, 2014 it acquired 9,188,800 common shares of Tree Island Steel Ltd. ("Tree Island") representing approximately 18.67% of Tree Island's 49,156,050 issued and outstanding common shares. The common shares were acquired
through the conversion of $4,594,400 principal amount of 10% second lien convertible debentures at a conversion price of $0.50 per common share (the "Conversion").
Prior to the Conversion, Arbutus held 311,000 common shares of Tree Island. Based on Tree Island's current number of issued and outstanding common shares, Arbutus now has ownership of 9,499,800 common shares representing 19.33% of the issued and outstanding common shares of Tree Island. Arbutus also owns 1,597,500 warrants (the "Warrants") in Tree Island. After giving effect to the Conversion and upon exercise of all Warrants held by Arbutus, assuming that no other securityholder converts its convertible securities, Arbutus would own or control 11,097,300 common shares, representing approximately 22.56% of the 49,156,050 common shares of Tree Island that would then be outstanding on a fully diluted basis.
The securities in Tree Island are held by Arbutus for investment purposes. Arbutus may increase or decrease its ownership position in the future.