Premium Brands Holdings Corp T.PBH

Redemption of 4.60% Convert. Unsec. Subordinated Debentures

[Betteryear2]

VANCOUVER, BC, Nov. 12, 2021 /CNW/ - Premium Brands Holdings Corporation ( "Premium Brands" or the "Corporation") (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, announced today that it will issue a notice (the "Notice") of redemption to holders of its currently outstanding 4.60% convertible unsecured subordinated debentures due December 31, 2023 (the "Debentures"). As set out in the Notice, the redemption date of the Debentures will be December 16, 2021 (the "Redemption Date"). The Debentures are redeemable for an amount (the "Redemption Price") equal to the principal amount of the Debentures plus accrued unpaid interest up to, but excluding, the Redemption Date. There are approximately $113.0 million aggregate principal amount of the Debentures outstanding.

 

[dougjp100]

I'm surprised by the share price drop since this announcement. Not stated above is the conversion price to shares which is well below current market. However as best as I can figure, the share dilution is only approximately .2 of 1%, therefore shouldn't be a factor. is there some other negative announcement I missed?