Pacific Rubiales Completes First Phase of Transaction
Pacific Rubiales completed the first phase of the early warrant exercise transaction commenced on December 14, 2009. As of 5:00 p.m (Eastern Time) on January 20, 2010 (the last day of the early exercise period allowing warrantholders to exercise their warrants at the reduced exercise price of $6.30), a total of 43,297,309 warrants have been exercised, representing a 97.8% take up rate, for gross proceeds of approximately $273 million to the company. As greater than the required 66 2/3% of the warrants outstanding as of the commencement of the transaction were exercised pursuant to the first phase, the company is proceeding with the squeeze out of all remaining warrants (the "Warrant Exchange"). The warrants (TSX: PRE.WT - News) have been halted from trading and are being delisted from the Toronto Stock Exchange effective the end of the trading day today.
Each warrant that had not been exercised as of 5:00 p.m. (Toronto time) on Wednesday, January 20, 2010 (except as described below under "U.S. Warrantholder) is deemed to have been automatically exchanged, without any further action on the part of the holder, for the payment by the company to the holder of $0.75 per warrant (the "Exchange Payment") plus the issuance of such number of common shares of the company (the "Exchange Shares") equal to the number of warrants held by the individual warrantholder multiplied by (A) the volume weighted average trading price of the common shares of the company on the Toronto Stock Exchange for the five trading days immediately prior to January 20, 2010 (the "Market Price") minus (B) $7.80, divided by (C) the Market Price. No fractional common shares will be issued. Certificates evidencing the Exchange Shares and cheques evidencing the Exchange Payments will be mailed to each eligible holder at the address specified in the register of warrantholders maintained by Equity Transfer & Trust Company within the next seven business days.