Debentureholders and Warrantholders of Stone Investment Group Limited Approve Amendments to Debenture Indenture and Warrant Indenture

TORONTO, ONTARIO--(Marketwired - Aug. 24, 2016) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Stone Investment Group Limited ("SIG" or the "Corporation") has obtained approval from holders of its 9% senior secured debentures (the "Debentures") due December 28, 2016 and holders of purchase warrants exercisable for common shares in the capital of the Corporation (the "Warrants") to amend the terms of the Debentures and Warrants, respectively.

The Debenture Amendments result in the following:

1. Extending the maturity date of the Debentures by five years from December 28, 2016 to December 28, 2021;
   
   
2. Changing the rate at which the deferred additional interest on the Debentures is calculated from 3.5% per annum to 1.5% per annum, effective as at January 1, 2017, to be paid out on December 28, 2021;
   
   
3. Redefining the interest coverage ratio, such that it will be calculated based on normalized earnings before interest, taxes, depreciation and amortization; and
   
   
4. Requiring the Corporation after October 1, 2018, to prepay once annually, on a pro rata basis, an aggregate amount equal to 40% of the Corporation's operating cash surplus within 140 days following the Corporation's financial year end, unless such amount is less than $120,000.

The Warrant Amendments result in the following:

1. Extending the Warrant Detachment Date (as defined in the warrant indenture relating to the Warrants) from December 28, 2016 to December 28, 2021, absent an earlier detachment upon the repayment of the principal amount of the Debentures; and
   
   
2. Redefining the repurchase amount of the Warrants such that the repurchase amount payable on the termination date of the Warrants is based on the assets under management of the Corporation.

About Stone Investment Group Limited

Stone Investment Group Limited is an independent wealth management company. Stone Investment Group Limited, through its wholly‐owned subsidiary, Stone Asset Management Limited, structures and manages high quality investment products for Canadian investors.