Commerce Split Corp. Class I Preferred Share Pro-Rata Redemption and Capital Share Consolidation
23 November 2019 - 9:04AM
Commerce Split Corp. (the “Company”) announces a pro-rata
redemption of YCM.PR.A Class I Preferred Shares (“Class I Preferred
Shares”) and a YCM Capital Share (“Capital Share”) consolidation in
order to maintain an equal number of Capital Shares, Class I
Preferred Shares and YCM.PR.B Class II Preferred Shares (“Class II
Preferred Shares”) outstanding.
In connection with the termination date
extension of the Company for a further five years to December 1,
2024, an additional retraction right was offered allowing existing
shareholders to tender any or all classes of Shares and receive a
retraction price based on the November 29, 2019 net asset value per
unit, payable on or before December 16, 2019. There were more Class
II Preferred Shares retracted than Capital Shares and Class I
Preferred Shares. As a result, pursuant to the Company’s
guidelines, the Company is required to redeem 719,390 Class I
Preferred Shares.
The Class I Preferred Shares will be redeemed on
a pro-rata basis, so that shareholders of record on the close of
business on November 29, 2019 will have approximately 44.35% of
their Class I Preferred Shares redeemed. The redemption price of
$5.00 per Class I Preferred Share will be paid on or before
December 16, 2019. Holders of Class I Preferred Shares that have
been called for redemption will be entitled to receive the November
dividend payable on December 10, 2019 for holders of record on
November 29, 2019.
As a result of the reduction in Class I and
Class II Preferred shares, Capital shareholders will have their
Capital Shares consolidated at a ratio of 0.578956069 for each
Capital Share outstanding. The consolidation will be a non-taxable
event. The expected post-consolidation trade date for the Capital
Shares will be announced at a later date.
The aggregate intrinsic value of the Capital
shareholders’ holdings will remain the same as a result of the net
asset value per Capital Share increasing on a proportionate basis
for each post-consolidation share on the consolidation
date.
As at the consolidation date, the resultant
increase in the net asset value per Capital Share will have the
impact of increasing the asset coverage ratios for the Class I
Preferred Shares and Class II Preferred Shares.
The Company invests in common shares of Canadian
Imperial Bank of Commerce, a Canadian financial institution.Certain
statements included in this news release constitute forward-looking
statements, including, but not limited to, those identified by the
expressions “expect”, “intend”, “will” and similar expressions to
the extent they relate to the Company. The forward-looking
statements are not historical facts but reflect the Company’s
current expectations regarding future results or events. These
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results or events to differ
materially from current expectations. Although the Company believes
that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future
performance and, accordingly, readers are cautioned not to place
undue reliance on such statements due to the inherent uncertainty
therein. The Company undertakes no obligation to update publicly or
otherwise revise any forward-looking statement or information
whether as a result of new information, future events or other such
factors which affect this information, except as required by law.
Commissions, trailing commissions, management fees and expenses all
may be associated with mutual fund investments. Investors should
read the prospectus before investing. Mutual funds are not
guaranteed, their values change frequently and past performance may
not be repeated. Please read the Company’s publicly filed documents
which are available at www.sedar.com.
Investor Relations: 1-877-478-2372Local:
416-304-4443www.commercesplit.cominfo@quadravest.com
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