Durrant Pate/Contributor

Sygnus Real Estate Finance Limited (SRF) has paid its associated company Sygnus Capital Group (SCG) just over 20.7 million shares in lieu of cash.

The payment is for financial services rendered by SCI, which serves as investment manager for Sygnus Real Estate Finance.

In a regulatory filing to the Jamaica Stock Exchange (JSE), where both companies’ shares are traded, SRF advised that the SCI has nominated Sygnus Credit Group, its parent company, as the holder of the shares, referred to as PIK shares.

These PIK shares were allotted for the payment of outstanding performance fees owed to SCI. These shares were listed on the main market of the JSE on March 19, referred to as the issue date. 

As part of this transaction and to minimise dilution to existing shareholders, 20,707,342 subscription warrants have been issued to shareholders on record as of the issue date.

Key details of the warrants are as follows:

• Warrant entitlement: Shareholders will receive one warrant for every 15 J$ ordinary shares or 15 US$ ordinary shares (US$ Shares) held.

• Issue date for warrants: 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 15 J$ shares or 15 US$ shares held.

• Warrant exercise price: J$18.25 per J$ share or US$0.12 per US$ share.

• Exercise period: Warrants may be exercised within two years from the issue date.

• Trading and conversion: Warrants are automatically stapled to ordinary shares and will be converted into shares upon exercise, after which they will be listed on the JSE.

• Main broker: JMMB Securities Limited