TSC Capital Announces Decision Not to Subscribe for Units in MagIndustries Corp.
TSC Capital Ltd. announces that it has decided to terminate its due diligence investigations with respect to MagIndustries Corp. and has determined not to participate in the potential offering of units of MagIndustries previously disclosed in a press release dated December 21, 2010.
TSC reserves all other rights granted to it pursuant to the letter of intent between TSC and MagIndustries dated December 21, 2010 including under the common share purchase warrants (the “Warrants”). Each Warrant entitles TSC to acquire one common share in the capital of the Company at an exercise price of Cdn$0.32 per common share at any time until December 21, 2011. The issuance of the Warrants was completed in conjunction with the issuance of one common share in the capital of the Company at a price of Cdn$0.32. If exercised in full, the common shares issuable to TSC pursuant to the Warrants will bring TSC’s ownership of MagIndustries to approximately 19.9% of the issued and outstanding shares.
TSC may in the future take such actions in respect of its holdings of securities of the Company as it deems appropriate in light of circumstances then existing, including the exercise of the Warrants, or the acquisition or disposition of Common Shares or other securities of the Company. TSC may from time to time acquire Common Shares in the open market or in privately negotiated transactions, subject to availability of Common Shares at prices deemed favourable, the Company’s business or financial condition and other factors and conditions TSC deems appropriate. In addition, TSC may formulate other purposes, plans or proposals regarding the Company or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors.
