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PENDER INTERNATIONAL IN FINAL NEGOTIATIONS FOR A $250 MILLION EQUITY LINE FINANCING AGREEMENT WITH A SYNDICATE OF FIVE PRIVATE EQUITY GROUPS
Pender International Inc. ("Pender" or the "Company") (OTCBB:PNDR) has entered into the final negotiations for a $250 million equity line of credit to be provided by a syndicate of five private equity investment groups. A definitive agreement was reached on April 3, 2005, and is to be executed on April 11, 2005.
The terms of the agreement permit the drawdown of funds upon five days notice, on an as needed basis by Pender. Each drawdown amount is to be converted into registered common shares at a conversion price of not less than $4.00 per share. The agreement is non-cancelable and provides the syndicate with first right of refusal on all financing required by the Company up to $250 million. If the equity line is fully drawn, Pender will be required to issue 62.5 million shares which will represent approximately 52.1% of the issued and outstanding shares, assuming no additional share issuances. Based on the proposed financing, the estimated value of the Company will increase from approximately $13.8 million, based on the current market price of $0.24, to an estimated potential value of $480 million, based on the minimum conversion price of the equity line.
The five syndicate members include Platinum Group Ltd., Saratoga Consulting Inc., SRG Group Ltd., Universal Inc., Vailcap Consulting Inc. The five participants in the Syndicate will provide funds on an equal basis for each drawdown.
Chairman Kalson G.H. Jang stated that the proposed financing agreement provides the Company with substantially greater funds availability, greater flexibility in the drawdown of funds, better reflects the potential values inherent in our existing development projects, substantially enhances shareholder value and provides us with access to strong financial partners. We are now in the position of expediting our project development activities.
Pender International Inc., located in Markham, Ontario, Canada operates as a merchant bank for small to medium-sized undervalued companies that require capital for growth or financial restructuring. In addition Pender provides experienced, highly qualified senior management in support of existing management of investee companies. Investment instruments include subordinate debt with warrants or conversion privileges and equity securities. Pender will invest in management and leveraged buy-outs, recapitalizations and financial restructurings, mezzanine financings and the purchase of real estate portfolios. To date, Pender has completed, or committed capital to concerns engaged in real estate and resort ownership and development, and gold mining located in Canada and Mexico. Pender's investment strategy is driven by the quality of underlying asset values, realizable upside potential, the potential to add substantial value and the timing of value realization, and is not limited by industry or geography. Additional information about the Company is available at www.PenderInternationalInc.com.
Listing: OTCBB Current Price: US $0.24 Stock Symbol: PNDR Shares O/S: 57,498,000
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Hey, great news today and we closed up 19 or so %.I think we have a nice run ahead of us.This stock is waaaaay oversold and the MACD is looking bullish.PNDR can move very quickly and looks like it moved out of it's base and in the short term looks very bullish.Great price to add or take a position,imo.
Posts: 48 | Registered: Mar 2005
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Another good release today. I don't think PNDR deserves to be down here, but I don't know if it can break out of this funk.
Posts: 158 | Registered: Jan 2005
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