Clarication of first News Release?
First Uranium debenture to trade interest flat
2012-03-05 15:34 PT - News Release
Mr. John Hick reports
FIRST URANIUM UNSECURED CONVERTIBLE DEBENTURES TO TRADE INTEREST FLAT IMMEDIATELY AND SECURED CONVERTIBLE NOTES TO TRADE INTEREST FLAT FOLLOWING MARCH 31, 2012 INTEREST PAYMENT
On March 2, 2012, First Uranium Corp. had entered into agreements with respect to two separate transactions providing for the sale of Mine Waste Solutions and its subsidiaries (MWS) and its Ezulwini gold mine and related assets, and its intention to hold shareholders, debentureholder and noteholder meetings to approve these transactions and a reorganization of the company.
The company has outstanding approximately $150-million total principal amount of 4.25 per cent senior unsecured convertible debentures due June 30, 2012, issued pursuant to the debenture trust indenture dated May 3, 2007. In order to complete the transactions, certain amendments to the debenture indenture must be approved by the debentureholders (and, if required, the shareholders of the company), with such securityholders required to agree, inter alia, that no interest on the debentures will accrue following the March 2, 2012, announcement date of the transactions, assuming the completion of both the MWS transaction and the Ezulwini transaction.
All trades in the debentures commencing on March 6, 2012, and until further notice will trade on an interest flat basis and the Toronto Stock Exchange will not report accrued interest regarding any such trades to participating organizations. All trades made from and including Dec. 31, 2011 (which was the last interest payment date on the debentures), to the close of business on March 2, 2012, were completed on an accrued interest basis. The outstanding interest obligation will be paid by the company upon closing of both the MWS transaction and the Ezulwini transaction. If the transactions are not completed as announced, interest obligations with respect to the debentures will be due and owing as currently specified in the debenture indenture.
In addition, the company has outstanding secured convertible $110-million notes due March 31, 2013, issued pursuant to a Canadian note indenture dated April 8, 2010, and secured convertible 418.6 million rand notes due March 31, 2013, issued pursuant to a rand note indenture dated April 23, 2010. The interest payment for the period from Oct. 1, 2012, up to and including March 31, 2012, will be paid in cash on April 2, 2012. In order to complete the transactions, the company will hold a meeting of the noteholders (and, if required, the shareholders of the company), with such securityholders required to approve amendments to the note indentures to agree, inter alia, that no interest will accrue after March 31, 2012, assuming the completion of the MWS transaction. If the MWS transaction is not completed as announced, interest obligations with respect to the notes will be due and owing as currently specified in the note indenture.
The notes will trade on an interest flat basis from April 2, 2012.
We seek Safe Harbor.