STOCK EXCHANGE / TSE Suspends Trading In Fracmaster Ltd. Installment
Receipts
CALGARY, June 15 /CNW/ - Fracmaster Ltd. (prior to May 14, 1998 the
Corporation's name was Canadian Fracmaster Ltd.) announced today that The
Toronto Stock Exchange (TSE) has suspended trading in Fracmaster instalment
receipts (which trade under the symbol FMA.IR). The Canadian Dealing Network
will facilitate continued trading of the instalment receipts on the
''over-the-counter'' market. Fracmaster common shares (which trade under the
symbol FMA) continue to trade on the TSE, Montreal Exchange and the New York
Stock Exchange.
In September 1997, Alfred H. Balm sold 28,863,016 common shares in a
secondary offering at a price of $19.50 per share payable in two instalments.
The first instalment of $9.75 per share was paid at closing and the second and
final instalment of $9.75 is payable on or before September 9, 1998. At the
closing of the secondary offering, the Fracmaster common shares sold by Mr.
Balm were pledged back to Balm to secure payment of the final instalment.
Until full payment of the final instalment, beneficial ownership of pledged
Fracmaster common shares is represented by the instalment receipts.
The TSE stated that it had suspended trading in the instalment receipts
because the market price of Fracmaster common shares had fallen below $9.75,
the amount of the final instalment. As a consequence, in the opinion of the
TSE, the instalment receipts had, in effect, a negative value. The TSE has
further stated that the suspension from trading is not a reflection or comment
on the financial condition of Fracmaster Ltd.
Fracmaster Ltd. is an international oil and gas service and production
company, which is listed on the New York Stock Exchange, the Toronto Stock
Exchange and the Montreal Exchange and trades under the symbol ''FMA''. For
further information on the Corporation, please visit the FMA website at
fracmaster.com. |
