Diamond Estates investor Lassonde acquires debenture

Executive Summary

• Lassonde Industries Inc. acquired a 10.0% unsecured convertible debenture of Diamond Estates Wines & Spirits Inc. for $1,330,079.78, increasing its total debt holding in the company.
• The acquisition triggers an Early Warning Report under National Instrument 62-103 and 62-104, as the Lassonde group maintains control of approximately 51.56% of Diamond Estates' issued and outstanding common shares.
• If all debentures held by the Lassonde group were converted, the group would hold approximately 63.07% of Diamond Estates' common shares.

Key Details

• Transaction Structure: Acquisition of a 10.0% unsecured convertible debenture from a third party via a privately negotiated transaction.
• Debenture Terms:
  • Principal Amount Acquired: $1,304,000.
  • Total Consideration Paid: $1,330,079.78 (representing principal plus accrued interest).
  • Maturity Date: November 9, 2026.
• Pre-Transaction Holdings (Lassonde Group):
  • Common Shares: 34,964,330 shares (~51.56% of issued/outstanding).
  • Debentures: $3.35 million in principal amount.
  • Deferred Share Units: 847,603 units.
• Post-Transaction Holdings (Lassonde Group):
  • Common Shares: 34,964,330 shares (~51.56% of issued/outstanding).
  • Debentures: $4,654,000 in principal amount (increased from $3.35 million).
  • Deferred Share Units: 847,603 units.
• Conversion Impact:
  • If Lassonde Industries converts all debentures: ~54.00% ownership (41,046,506 shares).
  • If Lassonde Holding converts all debentures: ~18.66% ownership (15,072,369 shares).
  • If both entities convert all debentures: ~63.07% ownership (56,118,874 shares).
• Purpose: The acquisition was undertaken for investment purposes; the group may acquire additional securities to assist with Diamond Estates' strategic plan.

Notable Quotes

• None provided in the text.