VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2012) - The Futura Corporation ("Futura") announces that it owns 4,668,400 common shares in Tree Island Steel Ltd. (TSX:TSL) ("Tree Island"), representing approximately 21.41% of the total issued and outstanding common shares of Tree Island.
Futura continues to maintain ownership and control of its previously acquired CAN$5,000,000 principal amount of 10% second lien convertible debentures (the "Debentures") (TSX:TSL.DB). The Debentures are convertible into 10,000,000 common shares of Tree Island, subject to anti-dilution adjustments. In addition, the warrants previously issued to Futura are exercisable into 1,875,000 common shares of Tree Island on or before November 26, 2014 (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, Futura would own or control 16,543,400 common shares, representing approximately 49.13% of the 33,672,550 common shares that would then be outstanding on a fully diluted basis. Assuming the conversion and exercise of all of Tree Island's issued and outstanding debentures and warrants, Futura's holdings would represent approximately 26.84% of the outstanding common shares of Tree Island.
No additional consideration was tendered by Futura 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. Futura may from time to time acquire additional common shares of Tree Island, dispose of some or all of the existing common shares of Tree Island, or continue to hold the common shares of Tree Island in the normal course of Futura's investment activities, subject to applicable securities laws. In addition, depending on market and other conditions, Futura may increase or decrease its ownership, control or direction over the Debentures or Warrants.
In accordance with applicable securities laws, Futura has filed an early warning report in respect of its holdings of Tree Island. A copy of the report may be obtained under Tree Island's corporate profile at www.sedar.com or by contacting the individual noted below.
The Futura Corporation is a Vancouver, British Columbia based private asset management and investment company. Futura has interests in numerous private and public companies, and specializes in the building materials sector.