Burnaby, British Columbia, Canada, 20 February 2009 - Taiga Building Products Ltd. (TSX: TBL), today announced that it has received a receipt dated 19 February 2009, for a final short form prospectus filed with the securities regulatory authorities in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador, and in the United States), relating to its previously announced rights offering. Taiga is seeking to raise up to CAD 10 million in gross proceeds from the Offering.
Under the terms of the offering, shareholders of record on 02 March 2009, will be entitled to receive one right for each common share held. Each right will entitle eligible holders to purchase 2.218 common shares of the corporation at a price of CAD 0.14 per common share. The exercise of rights and the payment for common shares must be completed by 5:00 p.m. Eastern Time on 26 March 2009 (the "expiry date"). Shareholders who fully exercise their rights are entitled to subscribe pro-rata for additional common shares, if available, that are not otherwise subscribed for on or before the expiry date.
As previously announced, although there is no standby purchase commitment with respect to the offering, the corporation's two principal shareholders have each expressed an intention to the corporation to exercise at least its basic subscription right, subject to customary conditions, and provided that in any event, neither will exercise its rights under the offering such as to acquire beneficial ownership, control, or direction over 50% or more of the common shares of the corporation then outstanding.
Shareholders and purchasers of rights should consult the Prospectus and their own legal and financial advisors to determine their rights and entitlements under the offering.
Taiga intends to use the entirety of the net proceeds of the offering for working capital purposes, including the reduction of the amount of indebtedness owing under its revolving credit facilities.