DUNDEE BANCORP AND AVALON TO SHARE POCO PETROLEUM SHARES
DUNDEE BANCORP AND AVALON TO SHARE POCO PETROLEUM SHARES TORONTO, May 15 /PRNewswire/ -- Dundee Bancorp Inc. (TSE: ME) and Avalon Corporation (NYSE: AVL) today announced that they have agreed to sell all of the approximately 20 million common shares (33 percent) of Poco Petroleums Ltd.
(TSE, ME, ASE) held by Dundee and Avalon, to a group of Canadian underwriters led by First Marathon Securities Limited. The shares will be resold in Canada by the underwriters at a price of $4.35 per share.
The net proceeds of the offering to Dundee (approximately $29 million) and Avalon (approximately $54 million) will be used to pay down indebtedness and, in the case of Avalon, the balance will be added to working capital. Dundee owns approximately 83 percent of the issued common shares of Avalon. Dundee's four nominees on the board of directors of Poco will resign at the closing of the offering, which is expected to occur on or about June 18, 1992. -0- 5/15/92 /CONTACT: Garth MacRae, president of Dundee Bancorp, 416-863-6990; or Richard Lister, chairman of the board of Avalon, 416-863-6990/ (AVL) CO: Dundee Bancorp Inc.; Avalon Corp.; Poco Petroleums Ltd. ST: Ontario IN: OIL SU:
SH -- NY078 -- 0829 05/15/92 14:43 EDT
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|Date:||May 15, 1992|
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