SOURCE: Macro Enterprises Inc.

Macro Enterprises Inc.

June 13, 2016 14:33 ET

Macro Enterprises Inc. Acquires and Cancels 1,900 of Its Class A Convertible Preference Shares

FORT ST. JOHN, BC--(Marketwired - June 13, 2016) - Macro Enterprises Inc. (TSX VENTURE: MCR) (the "Company" or "Macro") repurchased 1,900 of its Class A Convertible Preference Shares ("preference shares") for return to treasury and cancellation. Under the recently amended Articles of the Company, the Company was able to repurchase the $1,000 face value preference shares at a market rate of $1,167 based on a conversion rate of $1.75 per common share.

The preference shares are entitled to preferential cash dividends of 6.5% per annum, payable quarterly in arrears. Each preference share is convertible to 666.67 common shares of the Company.

As a result of the repurchase and cancellation of 1,900 preference shares the Company has reduced future dilution by 1,266,673 common shares or 4.2% based on its issued and outstanding common shares as of March 31, 2016.

Total purchase price for the preference shares was $2,232,918, which included $16,245 (or $8.55 per preference share) for the accrued and unpaid dividends as at the date of redemption. The Company will realize savings of $123,500 in future annualized dividend payments as a result of the cancellation of 1,900 preference shares.

The Company is in excellent financial shape, with net working capital in excess of $45 million after the preference share repurchase and remains undrawn on its $115 million senior secured credit facility.

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta. The Company's corporate office is in Fort St. John, British Columbia. Its shares are listed on the TSX Venture Exchange under the symbol MCR. Information on the Company's principal operating unit, Macro Industries Inc., can be found at www.macroindustries.ca.

Forward-Looking Statements

Certain statements in this news release may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements regarding expected revenues, expenses and industry trends. These risks and uncertainties include, but are not restricted to, oil prices, global economic conditions, government regulation of energy and resource companies, seasonal weather patterns, maintaining and increasing market share, terrorist activity, the price and availability of alternative fuels, the availability of pipeline capacity, and potential instability or armed conflict in oil-producing regions. These risks and uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • For further information please contact:

    Frank Miles
    President and C.E.O.
    (250) 785-0033

    Jeff Redmond
    C.F.O.
    (250) 785-0033