TFC: New Subscription Agreements for Issue of WarrantsJun 16, 2015 15:00
16 June 2015
New Subscription Agreements for Issue of Warrants
St Peter Port, Guernsey, 16 June 2015 - The Forest Company Limited, a closed-ended investment company, incorporated and registered in Guernsey, announces that it has entered into subscription agreements with two existing shareholders (each a "Holder"), for an aggregate commitment of US$25.5 million, in relation to a new warrant issuance arrangement.
Under the terms of the subscription agreements, the Company may draw down commitments, at its discretion, in one or more tranches up to 31 December 2016, following which date any undrawn commitments will lapse.
Following each draw down, each Holder will receive a warrant with a face value equal to the amount drawn down. Each warrant will be capable of conversion into ordinary shares in the Company, at the applicable published adjusted net asset value per share and the time of exercise, for a period of one year from the date of issuance of the relevant warrant, providing flexibility to the Holders as to the timing of any exercise. Each warrant will be subject to automatic conversion if not otherwise exercised prior to the first anniversary of its issuance.
The first draw down of up to US$10 million under the subscription agreements is anticipated to take place in June 2015.
The Company also anticipates entering into further subscription agreements for the issue of warrants with existing shareholders on materially similar terms to the Holders in due course.
About The Forest Company:
The Forest Company combines socially and environmentally responsible forestry investments with unique potential for stable and attractive returns through participation in the value chain of competitive and sustainable industries.
The Forest Company Limited is a closed-ended investment company, incorporated and registered in Guernsey in 2007, to take advantage of investment opportunities in trees, timberland and timber related assets. The Company focuses on forest plantations in areas with high biological growth rates, such as Brazil and Colombia. To date The Forest Company has raised USD 355 million in equity capital through private placements to institutional investors and family offices. Thus far, the Company has committed capital to five projects, which include both greenfield and standing plantations located in Brazil and Colombia.
The Company aims to build a diversified timberland portfolio in terms of age, class and species that is intended to maximise the risk/return profile. The Company believes that this approach will generate both long-term capital appreciation for shareholders and an attractive and sustainable income yield. For more information, visit www.theforestcompany.se.
Timber Capital Limited is the investment manager to The Forest Company.
For additional information, please contact:
ir@theforestcompany.se, The Forest Company, +1 55 11 3087 1015
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This announcement is not for distribution, directly or indirectly, in or into the United States (including its territories and dependencies, any State of the United States and the District of Columbia), Canada, Australia or Japan. This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act").
Securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.
This document is an advertisement and does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any decision in respect of The Forest Company Limited or other evaluation of any securities of The Forest Company Limited or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities. Neither the issue of this document nor any part of its contents constitutes an offer to sell or invitation to purchase any securities of The Forest Company Limited or any other entity or any persons holding securities of The Forest Company Limited.