TORONTO,
May 8, 2013 /CNW/ - Cymbria
Corporation ("Cymbria" or
the "Company") [TSX: CYB] today announced that it is
proposing an amendment to its constating documents to provide for a
Liquidity Realization Opportunity ("LRO") in respect of both
Class A Shares and Class J Shares (collectively, the
"Shares"). Cymbria's
manager, EdgePoint Investment Group Inc. (the "Manager"),
and Cymbria's board of directors
have recommended to include a right for the Company to repurchase a
number of Shares from time to time at a very small discount to net
asset value per share ("NAV").
Summary of Liquidity Realization Opportunity
Proposal
The purpose of this new feature is to increase Cymbria's attractiveness as an investment in
two key ways:
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Enhanced liquidity |
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Acknowledging that liquidity requirements vary from investor to
investor, the LRO has the potential to provide for greater overall
liquidity of Shares. |
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2. |
Heightened flexibility |
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Just as liquidity needs are specific to the individual
investor, so too are investment time horizons. The LRO offers a
potential ongoing opportunity for Shareholders to take advantage of
the option to sell their Shares to the Company at a price close to
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In certain circumstances where (i) Cymbria's portfolio has experienced growth in
the previous fiscal year, (ii) Class A Shares are trading at a
price less than 97% of NAV, and (iii) on the Manager's
recommendation, the LRO would provide an opportunity for holders of
Shares ("Shareholders") to dispose of Shares close to NAV.
Should more Shareholders elect to participate in the LRO than the
Company is willing to take up, such Shares will be taken up on a
pro-rata basis. The proposed amendment does not affect any other
rights of Shareholders or Share provisions.
It is anticipated that a minimum of 25% of the
positive return of Cymbria's
portfolio will be used in any given qualifying year to fund an
LRO.
As soon as reasonably possible following receipt of
shareholder approval, Cymbria is
intending to undertake its initial LRO based on investment returns
for the year ended December 31,
2012.
The Manager maintains its belief that Cymbria's growth drivers make it a superior
investment vehicle. As such, the Manager intends to continue to use
its Normal-Course Issuer Bid ("NCIB") to buy back shares if
Cymbria's stock price trades at a
meaningful discount to its NAV. The LRO does not affect the
Company's ability to continue repurchasing Shares through the NCIB.
The Manager believes buying back shares at an attractive discount
to NAV makes sense for Cymbria's
remaining shareholders.
Shareholder meeting
Cymbria is calling a special
meeting of holders of Class A Shares and Class J Shares (the
"Special Meeting") to ask for approval on the proposed
amendment on or about June 27, 2013,
and plans to mail to each Shareholder on or about June 5, 2013 its management information circular
(the "Circular") outlining the proposal and other
particulars to be acted on at the Special Meeting. The Circular
will contain important detailed information about the LRO and the
Special Meeting, and will be posted on www.sedar.com under the
Company's profile. The Company anticipates setting a record date
for the Special Meeting of May 27,
2013, or such other date that the Manager determines.
The LRO is also subject to approval by the Toronto
Stock Exchange ("TSX").
May 9 Cymbria
Corp. teleconference call
The Company is holding a conference call to discuss the proposed
amendment, the details of which are as follows:
Date: Thursday, May 9,
2013
Time: 4:00 p.m. (Eastern Daylight
Time)
Toll-free: 1.855.223.7309
Local Toronto area:
647.788.4929
Conference ID: 69577455
A call playback will be available by telephone
until 11:59 p.m. (Eastern Daylight
Time) on June 30, 2013.
Playback number: 1.855.859.2056
Conference ID: 69577455
This press release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor will there be any
sale or any acceptance of an offer to buy these securities in any
jurisdiction in which the securities are not qualified for
sale.
ABOUT CYMBRIA
CORPORATION
Cymbria's investment objective is
to provide shareholders with long-term capital appreciation through
an actively managed portfolio comprised primarily of global
equities and an investment in EdgePoint Wealth Management Inc.
Cymbria began trading on the TSX
on November 4, 2008 under the symbol
CYB.
SOURCE Cymbria Corporation