shareholder approval to change its name to "Cade Stuktur Corporation" to pursue
the financing and development of infrastructure related projects in the former East Germany.
Hyal also announced that it had entered into an agreement with ZPR Zellstoff-und
Papierfabrik Rosenthal Holding GmbH (ZHG), whereby ZHG would subscribe for
10 million common shares of Hyal, would provide certain management and
support to Hyal and would agree not to compete with Hyal in its new business.
Upon completion of the agreement, the board of directors of Hyal would be
restructured to include one nominee of ZHG.
Hyal further announced that it had reached an agreement with Prada Holdings Ltd.
to acquire a mineral royalty in the Wabush Iron Ore Mine in exchange for $49
million of series B preferred shares of Hyal. The preferred shares are cumulative,
non-convertible, non-voting, retractable under certain conditions and carry a 10 per
cent fixed annual dividend. The preferred shares also have a participation feature
whereby the holders will participate in 25 per cent of Hyal's net income, after certain
adjustments.
In conjunction with the above transactions, Hyal also announced that it will be
seeking shareholder approval to complete a share consolidation of one new
common share for every ten common shares currently outstanding in order to
decrease the number of outstanding common shares.
