Fairfax Financial Holdings (TSX: FFH and FFH.U) has acquired, through its insurance company subsidiaries, around 26.58 million common shares of Orla Mining Ltd (OLA.TO) resulting from the conversion of an aggregate amount of US$150 million principal amount of senior unsecured convertible notes of Orla, which were converted into common shares of Orla upon the election of Fairfax at a conversion price per common share of C$7.90 pursuant to the terms of the notes, the company said on Monday.
The conversion shares represent approximately 7.1% of the issued and outstanding common shares of Orla and brings Fairfax's total holdings, through its insurance subsidiaries, of Orla's securities to around 58.39 million common shares and around 17.54 million warrants, which allow Fairfax to acquire up to around 17.54 million common shares at an exercise price of C$11.50 per warrant, representing approximately 15.7% of the issued and outstanding common shares (on a non-diluted basis) and approximately 19.5% of the issued and outstanding common shares (on a partially-diluted basis, assuming exercise of the warrants), stated the company.
"Fairfax holds the Common Shares and Warrants for investment purposes and in the future, it may discuss with management and/or the board of directors of Orla any of the transactions listed in clauses (a) to (k) of item 5 of Form 62-103F1 of National Instrument 62-103 - The Early Warning System and Related Take-over Bid and Insider Reporting Issues and it may further purchase, hold, vote, trade, dispose or otherwise deal in the securities of Orla, in such manner as it deems advisable to benefit from changes in market prices of Orla securities, publicly disclosed changes in the operations of Orla, its business strategy or prospects or from a material transaction of Orla, and it will also consider the availability of funds, evaluation of alternative investments and other factors," added the company.