Spectra CFO acquires SPI debenture, preferred shares
2017-12-20 12:58 MT - News Release
Mr. Andrew Malion reports
SPECTRA INC. ANNOUNCES CFO PURCHASES CONVERTIBLE PREFERRED SHARES AND DEBENTURE OF SPECTRA PRODUCTS INC.
CABE Financial Corp. has acquired the royalty debenture and convertible preferred shares held by Dynamic Venture Opportunities Fund in Spectra Inc.'s partially owned subsidiary company, Spectra Products Inc. (SPI), as well as 1,315 common shares in SPI also owned by Dynamic Venture Opportunities Fund.
The president, and a shareholder, of CABE is Glen Campbell, a director, chief financial officer and chairman of both Spectra and SPI.
CABE has also agreed, after completion of the transaction, to amend the terms of the convertible preferred shares to waive the right of CABE to convert such convertible preferred shares to 1,000 common shares of SPI. This waiver ensures Spectra's 67.73-per-cent ownership percentage in SPI will not be reduced in the future as a result of the conversion right previously attached to convertible preferred shares.
CABE further agreed, after completion of the transaction, to extend the date upon which the convertible preferred shares could be called for redemption. Currently, this date is May 31, 2018. The retraction privileges will now be amended to a series of dates extending into 2020. These extended retraction dates will allow SPI to better manage its cash flow to enable it to meet these new redemption dates.
The transfer of ownership to CABE of the 1,315 common shares in SPI, the royalty debenture and the convertible preferred shares was approved by the board of directors of both Spectra and SPI.
Spectra, through its subsidiary, SPI, is the Toronto-based North American designer, manufacturer and distributor of Brake Safe, the visual brake stroke indicating system; Brake Inspector, the company's electronic in-cab air brake diagnostic system; and the Termin-8R line of anti-corrosion and extreme pressure lubricants.
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