VANCOUVER, Oct. 1, 2018
VANCOUVER, Oct. 1, 2018 /CNW/ - Fortress Global Enterprises Inc. ("Fortress Global" or the "Company") (TSX: FGE) (OTCQX: FTPLF) is pleased to announce that holders (the "Debentureholders") of its 7.0% convertible unsecured subordinated debentures due December 31, 2019 (the "Debentures") (TSX: FGE.DB.A) passed, at a meeting of Debentureholders held today, an extraordinary resolution approving certain amendments to the indenture governing the Debentures as more particularly summarized in the Company's news release dated September 30, 2018. The Debentures will be renamed "9.75% Convertible Unsecured Debentures", and will trade under the same trading symbol and bear the same CUSIP number as the original Debentures.
Chadwick Wasilenkoff, Chairman, Chief Executive Officer and President of Fortress Global, commented: "Today's approval of the Debenture amendments represents an important step in providing the Company with enhanced financial flexibility to enable management to focus their efforts on creating additional value for all stakeholders. We will continue to execute on the Company's business plan and corporate strategy by achieving improvements at our Fortress Specialty Cellulose Mill and advancing our new Bio-Products Segment."
Debentureholders voted over 90% in favour of the extraordinary resolution, with over 75% of the outstanding aggregate principal amount of Debentures being voted.
The Company intends to enter into a supplemental trust indenture to implement these amendments, which it anticipates shall be completed on or about October 5, 2018. At such time, all amendments to the Debentures shall become effective, other than the increase in interest rate to 9.75%, which shall become effective on January 1, 2019 (being the commencement of the next interest rate accrual period).
About Fortress Global
Fortress Global operates its dissolving pulp business at the Fortress Specialty Cellulose Mill located in Canada. Fortress Global also operates in the renewable energy generation sector through the Fortress Specialty Cellulose Mill's cogeneration facility, and plans to establish a demonstration plant for the future production of xylitol and other bioproducts.
This press release contains certain forward-looking information that reflects the current views and/or expectations of Fortress Global with respect to its performance, business and future events, including, but not limited to, statements regarding the timing for implementing the Debenture amendments. The reader is cautioned that forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties, assumptions and other factors which are difficult to predict and that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Forward-looking information is based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. Assumptions underlying the Company's expectations regarding forward-looking information contained in this news release include, but are not limited to, those with respect to the Company's ability to fulfill the conditions necessary to implement the approved amendments to the Debentures. Investors are cautioned that all forward-looking information involves risks and uncertainties including, without limitation, the following: that the amendments will not be successfully implemented for any reason; and other risk factors listed from time to time in the Company's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on statements comprising forward-looking information, which are qualified in their entirety by this cautionary statement. Fortress Global does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
SOURCE Fortress Global Enterprises Inc.
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