Polyair Inter Pack Inc.
TSX : PPK

Polyair Inter Pack Inc.

March 03, 2009 18:59 ET

Polyair Inter Pack Inc. Announces Issuance of 163,131,500 Common Shares Upon Exchange of Exchangeable Secured Debentures by Principal Shareholder

TORONTO, ONTARIO--(Marketwire - March 3, 2009) - Polyair Inter Pack Inc. ("PPK" or the "Company") (TSX:PPK), a North American producer of protective packaging products, announced today that its principal shareholder Glencoe Skydome Holdings, L.P. ("GSH"), has elected to exchange its $8 million of Exchangeable Secured Debentures (the "ESDs") of the Company and Polyair Corporation, the Company's principal U.S. operating subsidiary, together with accrued interest, for 163,131,500 common shares of the Company.

In December 2008, GSH subscribed for $5 million of ESDs, and in January 2009, upon the request of the Company, GSH subscribed for an additional $3 million of ESDs, bringing GSH's total holdings to $8 million aggregate principal amount ESDs. Following each subscription by GSH, accredited Canadian investors were entitled to subscribe for their pro rata portion of the ESDs for a period of approximately 30 days following each subscription. The second subscription period lapsed on February 28, 2009, with no shareholders having subscribed. Under the terms of the debenture agreement, the ESDs were exchangeable into common shares of the Company at a price of $0.05 per share and the holder of the ESDs could elect to have accrued interest paid out as further ESDs with comparable conversion privileges.

In accordance with the notice provisions of the debenture agreement, the shares will be issued on March 11, 2009, as a result of which GSH's ownership interest in PPK will increase from 51.88% to 98.02% of all the issued and outstanding shares of the Company.

Polyair Inter Pack Inc. (www.polyair.com) manufactures and distributes a wide range of protective packaging products and swimming pool solar covers in North America. The Company operates eight manufacturing facilities, seven of which are in the USA where it generates the majority of its sales. All above amounts are in US dollars, unless otherwise noted.

This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, unless registered or pursuant to an applicable exemption from registration.

Certain information included in this news release contains statements that are forward-looking, such as statements relating to anticipated future revenues and profitability of the Company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Polyair Inter Pack Inc. In addition, Polyair Inter Pack Inc. expressly disclaims any obligation to publicly update or alter its previously issued forward-looking statements.

Contact Information

  • Polyair Inter Pack Inc.
    Stysia Reay
    Investor Relations
    (416) 679-6591
    Website: www.polyair.com