TORONTO, Sept. 27,
2022 /CNW/ - Economic Investment Trust Limited (TSX:
EVT) (the "Company") announced today that upon the terms and
subject to the conditions of its substantial issuer bid (the
"Offer"), the Company has taken up and paid for 103,007
common shares (the "Shares") that were validly deposited and
not withdrawn to the Offer at a price of $140.00 per Share.
The Shares purchased under the Offer represent an aggregate
purchase price of approximately $14,420,980 and 1.85% of the total number of the
Company's issued and outstanding Shares before giving effect to the
Offer. After giving effect to the Offer, the Company has 5,464,628
Shares issued and outstanding.
Payment and settlement of the Shares purchased pursuant to the
Offer will be effected by Computershare Investor Services Inc. in
accordance with the settlement procedures described in the Offer
Documents. As the total number of Shares tendered was less than the
total that could have been acquired by the Company under the terms
of the Offer, all Shares validly deposited and not withdrawn prior
to the expiry of the Offer were acquired and no proration was
required.
For Canadian federal income tax purposes, a deemed dividend
arises on the repurchase of Shares under the Offer. To assist
holders of Shares ("Shareholders") in determining the
Canadian income tax consequences of the Offer, the Company has
determined that for purposes of the Income Tax Act
(Canada) (the "Tax Act"),
the paid-up capital per Share is estimated to be approximately
$36.45 at the time of repurchase
under the Offer. Shareholders should review the issuer bid circular
dated August 16, 2022 for more
information, including information about the tax treatment of
deemed dividends (refer to Section 13 "Income Tax Considerations
– Certain Canadian Federal Income Tax Considerations"). The
Company designates the entire amount of the deemed dividend arising
from its repurchase of Shares under the Offer as an "eligible
dividend" for purposes of the Tax Act.
The "specified amount" for purposes of subsection 191(4) of the
Tax Act in respect of each Share is $124.75.
Details of the Offer are described in the offer to purchase and
issuer bid circular dated August 16,
2022, as amended by a notice of change dated August 31, 2022, as well as the related letter of
transmittal and notice of guaranteed delivery (the "Offer
Documents"), copies of which were filed and are available on
SEDAR at www.sedar.com.
This press release is for informational purposes only and does
not constitute an offer to buy or the solicitation of an offer to
sell the Company's Shares.
About Economic Investment Trust Limited
The Company is a closed-end investment corporation that trades
on the Toronto Stock Exchange. The Company has always been an
investment vehicle for long-term growth through investment in
common equities, as management believes that over long period of
time, common equities, as an asset class, will outperform
fixed-income instruments or balanced funds. The investment
objective is to earn an above-average rate of return, primarily
through long-term capital appreciation and dividend income. The
equity investments in the portfolio reflect investment
opportunities worldwide. For more information, please visit:
https://www.evt.ca/.
Forward Looking Statements
This press release may contain forward-looking information
within the meaning of applicable securities regulation. The words
"may", "will", "would", "should", "could", "expects", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "predicts", "likely" or "potential" or the negative or
other variations of these words or other comparable words or
phrases, are intended to identify forward-looking statements. These
statements include, without limitation, statements regarding the
settlement of purchases under the Offer. The Company believes the
expectations reflected in the forward-looking statements in this
press release are reasonable but no assurance can be given that
these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties that may cause
the results or events mentioned in this press release to differ
materially from those that are discussed in or implied by such
forward-looking information. These risks and uncertainties include,
but are not limited to, general, local economic, and business
conditions. All forward-looking information in this press release
speaks as of the date hereof. The Company does not undertake to
update any such forward-looking information whether as a result of
new information, future events or otherwise. Additional information
about these assumptions and risks and uncertainties is disclosed in
filings with securities regulators filed on SEDAR
(www.sedar.com).
SOURCE Economic Investment Trust Limited