RAB Special Situations (fka RAB)

[Tackler]

Jumbo Development shares acquired by RAB

2004-06-29 17:32 ET - News Release


Mr. Neil Warrender of RAB Special Situations reports

RAB SPECIAL SITUATIONS L.P./JUMBO DEVELOPMENT CORPORATION-ANNOUNCEMENT

RAB Special Situations L.P. and RAB Energy Fund Ltd. entered into a separate subscription agreement with Jumbo Development Corp. where the subscribers subscribed for a total of nine million common shares of the company, at a price of 12.5 cents per share.

The subscribers may be considered joint actors. As part of the private placement, Special Situations acquired six million shares (representing approximately 10.68 per cent of the issued and outstanding shares on a non-diluted basis) and the fund acquired three million shares (representing approximately 5.34 per cent of the issued and outstanding shares on a non-diluted basis). Each of the subscribers has ownership of and control over the securities purchased in the private placement.

Immediately after the private placement, Special Situations owned six million shares and the fund owned three million shares, collectively representing approximately 16.02 per cent of the issued and outstanding shares on a non-diluted basis.

The subscribers purchased shares for investment purposes only and not with the purpose of influencing the control or direction of the company. Special Situations and the fund, together with joint actors, if any, may, subject to market conditions, make additional investments in or dispositions of securities of the company in the future, including additional purchases of shares. Special Situations and the fund, together with joint actors, if any, do not, however, intend to acquire 20 per cent of any class of the outstanding voting or equity securities of the company.