This PR has been followed by a warning Can someone interpret what this may mean?
Andover investor Sentient transfers shareholdings
2013-03-27 18:20 ET - News Release
Ms. Sue Bjuro of Sentient reports
SENTIENT AND ENIRGI GROUP ANNOUNCE INTERNAL REORGANIZATION OF ANDOVER MINING CORP. HOLDINGS
Sentient Executive GP IV Ltd. (for the general partner of Sentient Global Resources Fund IV LP), in connection with an internal reorganization, has transferred a total of 4,097,500 common shares of Andover Mining Corp., a $2.5-million (U.S.) principal amount convertible note of Andover and a $1.5-million (U.S.) principal amount convertible note of Andover to Enirgi Group Corp., a private Canadian company wholly owned within the Sentient group of global resource funds.
The April note and the August note mature on May 1, 2014, and Sept. 1, 2014, respectively, do not bear interest, and can be converted into common shares of Andover at 32 cents and 23.5 cents per share at the discretion of the holder thereof.
Assuming the conversion in full of the principal amount of the April note and the August note, Enirgi Group would acquire ownership and control over 18,528,623 common shares of Andover (including the 4,097,500 Andover shares over which Enirgi Group has ownership and control), representing approximately 14.84 per cent of the outstanding common shares of Andover, calculated on a partially diluted basis assuming the full conversion of the principal amount of the April note and the August note only at an exchange rate of $1 (U.S.) equalling $1.0166 (Bank of Canada noon rate on March 26, 2013).
Sentient received common shares of Enirgi Group in consideration of the Andover securities it transferred to Enirgi Group.
As a result, Sentient has ceased to have ownership and control over any securities of Andover.
The transfer of the Andover securities by Sentient to Enirgi Group was effected pursuant to an internal reorganization of holdings in securities of Andover by Sentient.