Early Warning Press Release - Acquisition of Redline Communications Group Inc. Warrants by EdgePoint
TORONTO, Nov. 25, 2021
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TORONTO, Nov. 25, 2021 /CNW/ - Redline Communications Group Inc. ("Redline " or the "Issuer") (TSX: RDL): This press release is being disseminated by EdgePoint Variable Income Portfolio ("EPVIP") and its portfolio manager EdgePoint Investment Group Inc. ("EdgePoint", and collectively with EPVIP, the "Acquiror") as required by National Instrument 62-103 - The Early Warning System and Related Take-Over Bids and Insider Reporting Issues, in connection with its acquisition of securities of Redline.
Pursuant to the credit agreement announced by the Issuer on November 22, 2021 (the "Credit Agreement"), the Acquiror acquired 2,500,000 warrants to purchase common shares ("Warrants") in the capital of the Issuer. Each Warrant entitles the holder to acquire from the Issuer one common share in the capital of the Issuer (each a "Warrant Share") at any time beginning November 22, 2021 and continuing up to and including 5:00 p.m. EST on November 21, 2024 at exercise prices of: (i) $0.65 per Warrant Share with respect to one-third of the Warrants; (ii) $0.75 per Warrant Share with respect to one-third of the Warrants; and (iii) $0.85 per Warrant Share with respect to one-third of the Warrants.
Prior to the acquisition, neither EPVIP nor EdgePoint had beneficial ownership of, or exercised control or direction over, any securities of the Issuer. Immediately upon entering into the Credit Agreement, EPVIP acquired registered and beneficial ownership of an aggregate of 2,500,000 Warrants, and EdgePoint, as portfolio manager of EPVIP, will exercise control or direction over such Warrants and any underlying Warrant Shares. If EPVIP were to exercise the Warrants, it would have ownership of, and EdgePoint would exercise control or direction over, 2,500,000 Warrant Shares, representing approximately 12.68% of the then issued and outstanding common shares in the capital of the Issuer.
The acquisition of the securities of the Issuer was made in the ordinary course of business and for investment purposes. EdgePoint may acquire or dispose of additional securities of the Issuer or may enter into derivative or other transactions with respect to such securities on behalf of accounts it manages. EPVIP may acquire or dispose of additional securities of the Issuer or may enter into derivative or other transactions with respect to such securities.
An early warning report will be filed by the Acquiror under applicable securities laws and will be available on the Issuer's SEDAR profile at www.sedar.com . A copy of the early warning report may also be obtained by contacting Sayuri Childs, Chief Compliance Officer of EdgePoint at (416) 963-9353. EdgePoint's head office is located at 150 Bloor St. West, Suite 500, Toronto, Ontario, M5S 2X9. The Issuer's head office is located at 302 Town Centre Blvd., Suite 100, Markham, Ontario, L3R 0E8.
SOURCE EdgePoint Investment Group Inc.