Debenture done!
STT issues 8.8 million shares in debenture conversion
2014-04-01 07:43 ET - News Release
Mr. David Deacon reports
STT ENVIRO CORP. ANNOUNCES SIGNIFICANT IMPROVEMENT IN ITS BALANCE SHEET
STT Enviro Corp. has released positive results from the maturity on April 1, 2014, of $2.3-million in convertible debentures, which resulted in new equity for the company of $1.2-million. The conversion of some of the Debentures and subsequent exercise of warrants will result in the issue of 8,808,210 common shares today. This means the Company was able to reduce its debt, net of an anticipated additional draw of an existing loan facility to assist with the retirement of the remaining debentures, from approximately $3.9 million to $2.8 million.
David Deacon, Chief Executive Officer, commented, "I am happy to announce that as of April 1st, 2014 we removed the potential overhang of 26.7 million shares from the Company. A manageable 8,808,210 shares are being issued today. Following their issue, the gross number of issued common shares will be 35,337,154."
He continued, "Removing the cloud of potential dilution means that we are now able to move forward with a clear understanding of the Company's outstanding share balance and investors will now be able to come to a valuation based on our results over the past couple of years:
-- Annual revenue up 115% since 2010 to $28.4 million in 2013; -- Increased EBITDA to $2.6 million in 2013, up from a negative $1.5 million in 2010; -- Expected 53% reduction of term debt from $6.0 million at March 31, 2011 to $2.8 million by the end of April 2014; -- Launch of STT Solutions, a high margin new aftermarket and service business; and -- Expansion of STT Tanks, almost doubling year-over-year 2011 sales."
The Company has received instructions from the holders of the final $169,722 of Debentures maturing April 25, 2014 which would result in a further 853,369 shares being issued, representing $119,472 of new equity, for a total of 9,661,579 new common shares and $1,352,621 of new equity. Please see the chart below for full details.
After April 25, 2014 the total expected number of common shares issued by the Company is 36,190,523.