New, hot off the press!!
>> MOND ANNOUNCES PLANS FOR RIGHTS OFFERING
MISSISSAUGA, ONTARIO--
Mond Industries Inc. ("Mond") today announced that it has filed
a rights offering circular with regulatory authorities. Under the
terms of the offering, shareholders will be entitled to one right
for each common share held. Four rights will entitle the rights
holder to subscribe for one common share at the subscription
price, which Mond expects to be $0.31 per share. After full
exercise of the rights, 8,970,000 common shares will be issued
for gross proceeds of approximately $2.8 million. The terms of
the rights offering are subject to regulatory approval.
The net proceeds of the offering will be used primarily to
finance the expansion of the Company's manufacturing capacity at
its Mississauga, Ontario plant and improve plant productivity,
with the balance to be used for working capital.
Chicago-based Trailmobile Corporation, Mond's controlling
shareholder, through its wholly owned subsidiary 1314385 Ontario
Limited, has agreed to exercise rights to acquire its pro-rata
share of common shares (54%) issuable pursuant to the offering,
and to subscribe for additional shares subject to the "additional
subscription privilege" available to all shareholders to ensure
the rights offering is fully subscribed.
The timing of the rights offering will be announced pending
regulatory approval.
About Mond
-----------
Mond Industries Inc. ("Mond") manufactures dry freight trailers
for commercial trucking customers in Canada and the United
States. In December 1998, Chicago-based Trailmobile Corporation
acquired a majority equity interest in Mond. Together they form
North America's third largest trailer manufacturer, with an
extensive sales and distribution network throughout North
America. Mond is listed on The Toronto Stock Exchange under the
symbol "MII". The Company's head office is located in
Mississauga, Ontario.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Craig Armitage or Bruce Wigle
The Barnes Organization Inc.
(416) 367-5000
Denis Arsenault, Chief Financial Officer
Mond Industries Inc.
(905) 565-9500 <<
JOE |
