Morganti Legal, P.C. Announces Shareholder Demands Equality for Minority Shareholders: IBI Group

TORONTO--()--Morganti Legal, P.C., announces that investors of IBI Group (TSX: "IBG") are organizing for the purpose of determining whether IBG’s management exercised its fiduciary duty to solicit investors to vote in favour to material modifications to its 7% convertible debentures (the “Debentures”) in a manner that was oppressive or unfairly prejudicial to the debenture holders that abstained or objected to the proposed amendments (the “dissenters”).

The Debentures were issued by IBG on September 24, 2009, with a $46 million aggregate principal amount, including the over allotment, offered at $1,000 per Debenture with a $19.17 conversion price, or 52 shares per Debenture. The Debentures had maturity date of December 31, 2014. The Debentures trade on the Toronto Stock Exchange under the symbols “IBG.DB.A”, “IBG.DB.B”, and “IBG.DB.C”.

During July 2014, IBG requested holders of its 7% convertible debentures to vote for and consent to modifications to its Debentures that extended the maturity date from December 31, 2014 to June 30, 2019, and reduced the conversion price to $5.00 CAD per share from $19.17 CAD. IBG gifted $86.96 CAD per note payable December 31, 2016, to those investors that consented. Investors that opposed the request but were forced to accept the material modifications to the Debentures were not provided any additional monies.

The investors may file an application to the Ontario court pursuant to the Canada Business Corporations Act and seek an order requiring IBG to produce its shareholder list, the relevant voting list, and compensate the dissenters to ensure that all securities holders of the same class be treated equally or purchase the dissenting investors’ Debentures.

Morganti Legal, P.C. is a law firm that investigates, litigates and resolves economic and financial disputes on behalf of shareholders and business owners. You may learn more about Morganti Legal, P.C., at www.morgantilegal.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Morganti Legal, P.C.
Andrew Morganti, 888-226-0845
amorganti@morgantilegal.com

Recent Stories

RSS feed for Morganti Legal, P.C.

Release Tags

Website

Release Summary

Shareholder Demands Equality for Minority Shareholders: IBI Group (TSX: IBG)

Morganti Legal, P.C.