India Globalization Capital, Inc. Announces Program for Early Exercise of Warrants to Purchase Common Stock
26 November 2008 - 12:00AM
PR Newswire (US)
BETHESDA, Md., Nov. 25 /PRNewswire-FirstCall/ -- India
Globalization Capital, Inc. ("IGC" or the "Company"),
(AMEX:IGC.UAMEX:IGC.WSAMEX:IGC), a company developing
infrastructure in India, announced today that the Company is
offering the holders of all 22,609,000 outstanding, publicly traded
warrants ("Public Warrants") and of 1,190,000 warrants issued by
the Company in private placements (the "Private Warrants" and
collectively with the Public Warrants, the "Warrants") the
opportunity, for a limited time, to acquire shares of common stock.
IGC is modifying the terms of the Warrants to (1) permit, instead
of paying the purchase price of $5.00 in cash, the exchange of 5
Warrants and $0.55 for one share of Common Stock and (2) permit the
exercise of a Warrant such that the Holder will receive one share
of Common Stock in exchange for every 12 Warrants surrendered.
Warrant holders may use one or both methods in exercising the
warrants for Common Stock. The offer will commence on Monday,
November 24, 2008 at 4:01 p.m., EST, and continue for a period of
twenty (20) business days, expiring on Tuesday, December 23, 2008
at 5:00 p.m., EST (the "Offer Period"). Upon termination of the
offer, the original terms of the Warrants will be reinstituted, the
Public Warrants will expire according to their terms on March 3,
2011 and the Private Warrants will expire according to their
respective terms. This expiration could be accelerated by
redemption as outlined in IGC's filings with the SEC related to the
original issuance of the Warrants. "We are making this offer to
raise additional capital and reduce the number of Warrants
outstanding. We believe the program is attractive to our Warrant
holders and look forward to a substantial number of Warrants being
exercised," said Ram Mukunda, CEO of IGC. The terms and conditions
of the offer are set forth in the documentation distributed to
record holders of IGC warrants (AMEX:IGC.WS) as of November 24,
2008. A copy of the offering document relating to the offer may be
obtained from Morrow & Co., LLC, the Information Agent for the
offering. Morrow's telephone number for bankers and brokers is
(800) 662-5200 and for holders of Warrants is (800) 607-0088.
Please contact the Information Agent with any questions regarding
the offering. The foregoing reference to the offer and any other
related transactions shall not constitute an offer to buy or
exchange securities or constitute the solicitation of an offer to
sell or exchange any securities in IGC or any of its subsidiaries.
Investors and security holders are urged to read the following
documents filed with the SEC, as amended from time to time,
relating to the offer as they contain important information: (1)
the Company's registration statement on Form S-1; and (2) the
Schedule TO. These and any other documents relating to the offer,
when they are filed with the SEC, may be obtained at the SEC's
website at http://www.sec.gov/, or from the Information Agent as
noted above. About IGC Based in Bethesda, Maryland, IGC operates
through two infrastructure companies in India, Sricon
Infrastructure Private Limited ("Sricon") and Techni Bharathi,
Limited ("TBL"). IGC owns sixty-three percent of Sricon and
seventy-seven percent of TBL. IGC through its subsidiaries in India
has three lines of business: 1) Highway and other heavy
construction, 2) mining & quarrying and 3) civil construction
and engineering of high temperature plants. The Company's medium
term plans are to expand each of these lines of business. IGC's
operations are based in India. The company has offices in Maryland,
Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of the Form
S-1 and IGC's other filings with the SEC containing information
about IGC, our Indian operations and other relevant documents, are
available at no charge at the SEC's Internet site
(http://www.sec.gov/). For more information about IGC, visit the
company's web site at http://www.indiaglobalcap.com/.
Forward-Looking Statements: This press release may contain
forward-looking statements. These statements reflect management's
current views and are subject to risks and uncertainties that could
cause actual results to differ materially from those projected,
expressed or implied in these statements. Factors, which could
cause actual results to differ, relate to: (i) the ability of the
parties to successfully execute on the contracts and business plan,
(ii) our ability to raise additional capital and the structure of
such capital including the exercise of warrants, and (iii) changes
in the exchange rate between the US dollar and the Indian Rupee. We
undertake no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise. Other factors and risks that could cause or
contribute to actual results differing materially from such forward
looking statements have been discussed in greater detail in the
Company's registration statement on Form S-1. DATASOURCE: India
Globalization Capital, Inc. CONTACT: Ram Mukunda of India
Globalization Capital, Inc., +1-301-983-0998, ; Investor Relations:
Jon Cunningham, +1-800-733-2447 Ext. 107, or Dave Gentry,
+1-800-733-2447 Ext. 104, both of RedChip Companies, Inc. for India
Globalization Capital, Inc., , http://www.redchip.com/ Web Site:
http://www.indiaglobalcap.com/
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