Rand Logistics Unit 10/26/08 (MM) (NASDAQ:RLOGU)
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Rand Logistics, Inc. (NASDAQ: RLOG, RLOGW, RLOGU) today announced that
it reduced the exercise price of its outstanding, publicly traded
warrants (‘‘Warrants’’)
to $4.50 (from the $5.00 exercise price provided by the original terms
of the Warrants) until 5:00 p.m. eastern time on July 9, 2007 (the “Expiration
Time”). Any and all Warrants properly
exercised in accordance with the terms of the Warrants prior to the
Expiration Time will be accepted by Rand at the reduced exercise price,
and one share of registered common stock per Warrant will be issued to
the exercising Warrantholder. After the Expiration Time, the $5.00
exercise price included in the original terms of the Warrants will be
reinstituted. Except for the reduced exercise price of the Warrants
prior to the Expiration Time, the terms of the Warrants remain
unchanged. The reduced exercise price applies to all of Rand’s
currently outstanding publicly traded Warrants, including those Warrants
still included as part of the units issued in Rand’s
initial public offering. Holders of Warrants that desire to exercise
their Warrants should contact their brokers and instruct them to
effectuate an exercise of the Warrants prior to the Expiration Time.
As of May 4, 2007, approximately 7,692,180 Warrants are outstanding. Rand’s
Warrants, common stock and units are listed on the Nasdaq Capital Market
under the symbols RLOGW, RLOG AND RLOGU, respectively. On May 3, 2007,
the last reported sale prices of the Warrants, common stock and units
were $1.99, $6.91 and $11.00, respectively. Rand recommends that
Warrantholders obtain current market quotations for Rand’s
securities before deciding whether or not to exercise their Warrants.
On April 30, 2007, Rand raised $6,768,000 upon the exercise of 1,504,000
Warrants by one of Rand’s largest
shareholders. The Warrants were exercised at an exercise price of $4.50,
rather than the $5.00 exercise price in the Warrants, in accordance with
the terms of an agreement between Rand and the shareholder. For
additional information, see Rand's Form 8-K filed today with the
Securities and Exchange Commission.
Approximately 1,571,349 of the Warrants are held by individuals, or
affiliates of individuals, who are officers, directors, employees or
consultants of Rand. Each such officer, director, employee and
consultant has agreed not to exercise his Warrants prior to the
Expiration Time.
Laurence Levy, Chairman and CEO of Rand Logistics, stated, “We
are pleased to offer our warrantholders the opportunity to exercise
their warrants at a reduced exercise price of $4.50, and hope that a
substantial number of warrants will be exercised. In addition to
potentially raising a significant amount of capital for the Company, we
believe that a reduction in the number of our outstanding warrants will
simplify our capital structure and reduce the overhang of those warrants
on the Company’s common stock. We also
believe that an increase in the number of outstanding shares of common
stock resulting from the exercise of warrants will provide greater
liquidity for our common stock.”
While Rand considers acquisition and other investment opportunities on a
regular basis, Rand does not presently have any contemplated specific
use for the proceeds of any Warrant exercises, other than for general
working capital purposes.
RAND’S BOARD OF DIRECTORS HAS APPROVED THE
WARRANT EXERCISE PRICE REDUCTION. HOWEVER, NEITHER RAND NOR ANY OF ITS
DIRECTORS, OFFICERS OR EMPLOYEES MAKES ANY RECOMMENDATION AS TO WHETHER
TO EXERCISE WARRANTS. EACH HOLDER OF A WARRANT MUST MAKE ITS OWN
DECISION AS TO WHETHER TO EXERCISE SOME OR ALL OF ITS WARRANTS.
The information above does not constitute an offer to buy or exchange
securities or constitute the solicitation of an offer to sell or
exchange any securities in Rand.
About Rand Logistics
Rand Logistics, Inc. is a leading provider of bulk freight shipping
services throughout the Great Lakes region. Through its subsidiaries,
the Company operates a fleet of eleven self-unloading bulk carriers,
including nine River Class vessels and one River Class self-unloading
tug/barge unit. The Company is the only carrier able to offer
significant domestic port-to-port services in both Canada and the U.S.
on the Great Lakes. The Company’s vessels
operate under the U.S. Jones Act – which
dictates that only ships that are built, crewed and owned by U.S.
citizens can operate between U.S. ports – and
the Canada Marine Act – which requires
Canadian commissioned ships to operate between Canadian ports.
Forward-Looking Statements
This press release may contain forward-looking statements (within the
meaning of the Private Securities Litigation Reform Act of 1995)
concerning the Company and its operating subsidiaries. Forward-looking
statements are statements that are not historical facts, but instead
statements based upon the current beliefs and expectations of management
of the Company. Such forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ from the
results included in such forward-looking statements.