Durrant Pate/Contributor

In an Our Today news follow-up, more details have emerged about the multi-million dollar pay-in-kind (PIK) shares deal between Sygnus Real Estate Finance (SRF) and its associated company Sygnus Capital Investments (SCI).

PIK in this case refers to the payment of SRF shares equivalent to the amount of money owed to SCI. 

Our Today can confirm that last month SRF elected to settle its outstanding performance fee liability of J$377.9 million by issuing PIK shares to SCI, its investment manager.

It was reported last week that SRF is paying SCI just over 20.7 million shares in lieu of cash. SCI has nominated Sygnus Capital Group, its parent company, as the holder of these shares.

On March 19, the PIK shares were listed on the main market of the Jamaica Stock Exchange and now carry the same rights as existing ordinary shares. 

Addressing dilution of shares

To minimise the dilutionary impact on existing shareholders, warrants for an equivalent number of PIK shares will be granted to shareholders on record as of the issue date of March 19, 2025. 

These warrants will allow eligible shareholders to subscribe for additional shares at a fixed exercise price. The issue date for the warrants is March 19. 

As a result, all shareholders on record as of March 19 will be allotted one warrant for every J$15 shares or US$15 shares held. The warrant exercise price: J$18.25 per J$ share or US$0.12 per US$ share.