NEW YORK, NEW YORK--(Marketwired - Sept. 16, 2016) - This news release is issued by Ivanhoe Industries, LLC ("Ivanhoe Industries"), pursuant to the early warning requirements of Canada's National Instrument 62-103 with respect to common shares of Kaizen Discovery Inc. ("Kaizen").
On September 15, 2016, Kaizen and Ivanhoe Industries' affiliate, HPX TechCo Inc. ("HPX") entered into a debt settlement agreement, subject to final approval by the TSX Venture Exchange, to convert the full amount of principal and interest owing on a loan facility provided to Kaizen by HPX, totaling approximately C$5.07 million, into common shares of Kaizen at a conversion price of C$0.1575 per share. As a result of the conversion, Kaizen will issue 32,210,460 common shares to HPX, representing approximately 15.74% of Kaizen's then issued and outstanding common shares.
Following this issuance, Ivanhoe Industries will be deemed to beneficially own 138,699,461 Kaizen common shares, representing 66.82% of Kaizen's then issued and outstanding common shares. All of these securities will be beneficially owned and controlled by Ivanhoe Industries as the shares are directly registered to Ivanhoe Industries' affiliate, HPX.
Ivanhoe Industries, through HPX, is acquiring these shares for investment purposes. Depending on economic or market conditions or matters relating to Kaizen, Ivanhoe Industries or HPX may choose to either acquire or dispose of additional Kaizen common shares.
For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the transactions hereunder please go to the Kaizen's profile on SEDAR website at www.sedar.com, or contact Penny Schattenkirk at (604) 689-8765. Ivanhoe Industries has an office c/o 654-999 Canada Place, Vancouver, British Columbia, Canada V6C 3E1.
Contact Information:
(604) 689-8765