Hallmark Resources converts debt to become majority shareowner of Aqua-Pure

CALGARY – Aqua-Pure Ventures (TSXV:AQE) has a new majority shareholder following the conversion of $15.3 million of its debt securities into common shares.

After the conversion, Hallmark Resources Ltd. holds about 51.6 per cent of the Calgary-based water recycling company’s stock.

Hallmark is controlled by Jake and Brent Halldorson. Jake Halldorson also personally owns about 1.75 per cent of Aqua-Pure’s outstanding shares.

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Aqua-Pure said Friday it issued 30.6 million shares to the Halldorsons to covert 2007 debt securities with face value of $15.3 million. It also issued 14.6 million common shares to settle $7.3 million of debts owed to Hallmark.

The conversion of the secured debt, which matures March 10, 2012, was approved by Aqua-Pure shareholders at their annual meeting on Sept. 29.

Aqua-Pure also announced Friday that it has reached a favourable agreement to resolve a law suit with a vendor that will result in Aqua-Pure recognizing a gain of over $1.3 million in the current quarter.