Boyd Group Secures $2 Million Investment From Institutional Investor
Boyd Group Inc (The) BYD.A
Shares issued 6,109,994 Nov 30 close $1.70
Tue 1 Dec 98 News Release
Mr. Terry Smith reports
The Boyd Group, operating principally as Boyd Autobody & Glass, has signed
a letter of understanding with an institutional investor which contemplates
the investor subscribing for 1,428,572 Class A shares of Boyd for a total
subscription price of $2.0-million. As is typically required for
institutional private placements of this nature, the investor will be
required to hold its shares for a minimum one-year period and, accordingly,
the price per share to be paid by the investor is at a discount to the
recent trading price for Boyd's shares.
In connection with the investment, Boyd will undertake to establish, within
the next two years, an employee share ownership plan or similar broad-based
ownership plan for the benefit of its employees. The investor will also be
represented on Boyd's board of directors.
The investment, which is expected to close mid-December, is subject to
certain conditions, including the completion of due diligence.
|
