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ATLAS ANNOUNCES CLOSING OF NEW CAPITAL INVESTMENT

 DENVER, Sept. 20 /PRNewswire/ -- Atlas Corp. (NYSE: AZ) announced today the closing of the sale by Atlas to Phoenix Financial Holdings Inc., for an aggregate of $8,375,000, of (i) 1,500,000 shares of Atlas Common Stock, (ii) an Atlas Redeemable Convertible Debenture due 1998 in the principal amount of $3,500,000, which is convertible as to principal into Atlas Common Stock at the rate of $4 per share and bears interest at the rate of 9 percent per annum payable in cash or in Common Stock valued at $4 per share, and (iii) Warrants, exercisable for three years, to purchase 2,000,000 shares of Atlas Common Stock at $3.625 per share. The closing of the sale took place pursuant to the agreement between Atlas and Phoenix which was entered into and announced on Sept. 3, 1993. The 1,500,000 shares of Common Stock and Warrants to purchase 750,000 shares of Common Stock have been sold by Phoenix to a group of individual and institutional investors in a private sale arranged through a Canadian underwriting firm. Equity Reserve Corp., a controlled affiliate of Phoenix, has purchased the Debenture. Phoenix will own directly Warrants to purchase 1,250,000 shares. Phoenix is a Toronto-based Canadian corporation which has several gold mining investments and affiliations.
 Immediately following the closing of the transaction with Phoenix, the Atlas board of directors was reconstituted to consist of Douglas R. Cook and Edgar M. Masinter, who were serving as directors previously, and David J. Birkenshaw, James D. Beatty, David P. Hall and David A. Knight, who have been designated by Phoenix. Birkenshaw will also become Atlas' chairman of the board and chief executive officer, and Steven Manz and Michael Gross, Phoenix designees, will become president and chief financial officer and senior vice president and chief operating officer, respectively.
 -0- 9/20/93
 /CONTACT: Robbin A. Lee of Atlas, 303-825-1200/
 (AZ)


CO: Atlas Corp.; Phoenix Financial Holdings Inc. ST: Colorado IN: MNG SU:

MC -- DV007 -- 3872 09/20/93 17:19 EDT
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Publication:PR Newswire
Date:Sep 20, 1993
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