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Press release from CNW Group

Brick Completes Cashless Exercise Offer

Tuesday, July 12, 2011

Brick Completes Cashless Exercise Offer20:00 EDT Tuesday, July 12, 2011Participation requirement satisfied, 90% of outstanding warrants cashlessly exercisedEDMONTON, July 12, 2011 /CNW/ - The Brick Ltd. (TSX: BRK) (the "Brick Group") today announced that it has completed its offer to holders of its Class A common share purchase warrants ("Warrants") to submit their Warrants for exercise on a cashless basis, which offer was first announced on May 25, 2011 (the "Offer"), resulting in the issuance of an aggregate of 67,600,954 Class A common shares. Holders of 105,118,340 (90%) of the Brick Group's outstanding Warrants submitted their Warrants for cashless exercise pursuant to the Offer, exceeding the condition for proceeding with the Offer that not less than 85% of all Warrants outstanding as of 5:00 p.m. (Eastern Time) on June 29, 2011 be properly submitted for cashless exercise pursuant to the Offer not later than such time.Holders of listed Warrants (the "Listed Warrants") issued pursuant to the Brick Group's warrant indenture dated as of May 28, 2009 (CUSIP 107879116) received approximately 0.6397 Class A common shares for each whole Listed Warrant submitted pursuant to the Offer.   Fairfax Financial Holdings Limited (together with its affiliates, "Fairfax") exercised 48,000,000 Listed Warrants and received 0.6397 Class A common shares for each Listed Warrant and as holder of the Warrants (the "Fairfax Warrants") issued pursuant to the Brick Group's warrant certificate dated as of August 24, 2009 exercised 5,317,000 Fairfax Warrants and received approximately 0.7046 Class A common shares for each whole Fairfax Warrant.   The Listed Warrants and the Fairfax Warrants comprise all of the Warrants.  Following completion of the Offer, there are 122,065,821 Class A common shares, 11,196,470 Listed Warrants and no Fairfax Warrants outstanding.The Brick Group has been advised that each of Fairfax, Mackenzie Financial Corporation, William H. Comrie ("Comrie") and Chou Associates Management Inc. (collectively, the "Supporting Entities") submitted all of their Listed Warrants and Fairfax Warrants for cashless exercise pursuant to the Offer, as required under the terms of a support agreement entered into among the Brick Group and the Supporting Entities.  Prior to the completion of the Offer, the Supporting Entities beneficially owned in aggregate approximately 86% or 100,010,100 of the outstanding Warrants.Prior to the completion of the Offer, the Brick Group understands that Fairfax owned or controlled 11,046,600 (20%) Class A common shares, 48,000,000 (43%) Listed Warrants, 5,317,000 (100%) Fairfax Warrants and $45,000,000 (38%) aggregate principal amount of debentures. Pursuant to the Offer, the Brick Group understands that Fairfax was issued 34,451,803 Class A common shares upon the cashless exercise of all of its Warrants. Following the completion of the Offer, the Brick Group understands that Fairfax owns or controls 45,498,403 or approximately 37.3% of the outstanding Class A common shares, no Warrants and the same amount and proportion of debentures.Prior to the completion of the Offer, the Brick Group understands that Comrie owned or controlled 21,561,983 (40%) Class A common shares, 18,000,000 (16%) Listed Warrants and $18,000,000 (15%) aggregate principal amount of debentures. Pursuant to the Offer, the Brick Group understands that Comrie was issued 11,514,600 Class A common shares upon the cashless exercise of all of his Warrants. Following the completion of the Offer, the Brick Group understands that Comrie owns or controls 33,076,583 or approximately 27.1% of the outstanding Class A common shares, no Warrants and the same amount and proportion of debentures.Fairfax's address is 95 Wellington Street West, Suite 800, Toronto, Ontario M5J 2N7. Comrie's address is Suite 366, 220 Newport Centre Drive, Newport Beach, California 92660. The Brick Group understands that both Fairfax and Comrie cashlessly exercised their Warrants to acquire Class A common shares for investment purposes and that they may purchase additional securities of the Brick Group from time to time in the future.About the Brick GroupThe Brick Group, together with its subsidiaries, is one of Canada's largest volume retailers of household furniture, mattresses, appliances and home electronics, operating under five banners: The Brick, United Furniture Warehouse, The Brick Superstore, The Brick Mattress Store, and Urban Brick. In addition, through its corporate sales division, the Brick Group services the subdivision, condominium, hospitality, and high-rise builder market. The Brick Group's retail operations are located in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Prince Edward Island, Nova Scotia, New Brunswick, the Northwest Territories and Yukon.www.thebrick.comFor further information: Contact Information Bill Gregson Greg Nakonechny President and CEO                         Vice President, Legal and Corporate Secretary The Brick Group The Brick Group (780) 930-6300 (780) 930-6300 investor@thebrick.com investor@thebrick.com