First Toronto, Pacvest in amalgamation

A new company, First Toronto Mining (TSE), has been created through the amalgamation of First Toronto Capital and Pacvest Capital.

Shareholders of First Toronto will receive one share of the new company for each First Toronto share, while Pacvest shareholders will receive one new share for every seven Pacvest shares. The holders of 10% convertible subordinated debentures of Pacvest which were outstanding at the time of amalgamation (Jan 1) will receive a convertible note from the new company with a face value of $1,350 for each $1,000 of principal amount outstanding under such debentures.

The convertible notes will be repayable between March 31 and June 30, 1989. Any notes not presented for repayment by June 14 will automatically be converted into shares of the new company at an exchange rate of 142.86 shares of the new company for every $1,350 of principal amount outstanding under the debentures.

First Toronto Capital, a mining finance company, reported assets of $188 million at Sept 30, 1988. Pacvest, among its investments, has a 22% interest in International Interlake Industries (VSE), a mining and oil and gas company based in Calgary.