Paulson Buys WesternZagros Convertible Notes

The Convertible Notes will bear interest from the date of issue payable semi-annually in arrears on June 30 and December 31 of each year, with the first interest payment due on December 31, 2013. The Convertible Notes are not redeemable by the Corporation prior to their expiry, except upon a change of control of WesternZagros where the holder of the notes has not exercised the conversion right.

Under the terms of the Private Placement and the indenture governing the Convertible Notes, the Company has the right to issue, on the same terms, additional Convertible Notes. Pursuant to the Investment Agreement dated March 10, 2013 between the Company and Crest, Crest has certain participation rights to purchase additional Convertible Notes from the Company such that Crest would hold 19.8% of the total Convertible Notes issued by the Company to Paulson, Crest and any other purchasers.

Paulson currently holds 11.1% of the issued and outstanding Common Shares. If Paulson were to exercise its conversion rights under the Convertible Notes, it would hold 18.6% of the total issued and outstanding Common Shares after such conversion. The Convertible Notes were issued pursuant to applicable exemptions from prospectus requirements and as a result the Convertible Notes and any Common Shares issued on conversion are subject to resale restrictions until October 19, 2013 in accordance with applicable Canadian securities laws.

(Source: WesternZagros)

One Response to Paulson Buys WesternZagros Convertible Notes

  1. Mealticket 20th June 2013 at 04:14 #

    Stock price is soaring upon this news..