NORTH CHARLESTON, SC, Oct. 13,
2016 /CNW/ - The Article 6 Marital Trust created under
the First Amended and Restated Jerry Zucker Revocable Trust dated
4-2-07 (the "Trust") announced
today that it has exercised 3,238,500 common share purchase rights
("Rights") which were distributed by Colabor Group Inc.
("Colabor") (TSX: GCL) pursuant to a short form
prospectus dated August 31, 2015.
As a result of the exercise of the Rights, 8,787,452
commons shares of Colabor were acquired. Concurrently,
pursuant to a Standby Purchase and Voting Support Agreement dated
July 13, 2016 which the Trust and
Z-Holdings North ULC, an affiliate of the Trust
("Z-Holdings" and together with the Trust, the "Zucker
Group"), were parties, an additional 3,290,222 common shares of
Colabor were acquired by the Zucker Group. Anita G. Zucker is the trustee of the Trust and
a director of Z-Holdings.
In total 12,077,675 common shares were acquired by the Zucker
Group which represents approximately 11.82% of the issued and
outstanding common shares of Colabor.
Prior to the transactions, the Zucker Group owned 3,238,500
common shares and debentures in the principal amount of
$1,313,000 which were convertible
into 77,923 common shares. Together this represented
approximately 12.03% of the issued and outstanding common shares of
Colabor prior to Colabor's distribution of the Rights and the
issuance of shares under the Standby Purchase and Voting Support
Agreement.
As a result of the transaction, and the concurrent reduction in
the conversion price of the convertible debentures which has been
approved by the debenture holders, the Zucker Group owns or has the
right to convert into, 15,841,175 common shares (comprised of
15,316,175 common shares and 525,000 common shares which may be
received upon the conversion of the debentures), or approximately
15.43% of the issued and outstanding common shares of
Colabor.
The common shares and debentures of Colabor were acquired for
investment purposes. The Zucker Group may acquire additional
common shares and/or debentures of Colabor, subject to price and
availability.
SOURCE The Article 6 Marital Trust Created Under The Jerry
Zucker Revocable Trust