Pathfinder Convertible Debenture Fund Announces Treasury Offering

Maximum $75,000,000

TORONTO, Aug. 15, 2012 /CNW/ - Middlefield Group, on behalf of Pathfinder Convertible Debenture Fund (TSX: PCD.UN) ("Pathfinder" or the "Fund"), is pleased to announce that it has filed a preliminary short-form prospectus in relation to an additional offering of units of the Fund.

Pathfinder's investment objectives are to:

I.     pay monthly distributions to unitholders; and
II.    maximize total after-tax returns for unitholders over the life of the Fund.

The Fund obtains exposure to an actively managed diversified portfolio comprised primarily of convertible debentures of Canadian issuers. Middlefield Capital Corporation, the Advisor, believes that convertible debentures represent an appealing investment opportunity, providing:

I.     high levels of stable current income and attractive yields to maturity;
II.    additional stability and safety of a senior security position relative to an investment in equities, income trust securities or preferred securities; and
III.    the potential for common equity-like returns.

Formed in 1979, Middlefield Group creates and manages specialized investment products for individual and institutional investors and has assets under management of approximately $3 billion.

The price of the units will equal or exceed the net asset value per unit on the day preceding the date on which the price is determined plus the portion of the expenses to be borne by purchasers of the offering.

The syndicate of agents is being led by CIBC and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., Scotiabank, TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Middlefield Capital Corporation, Raymond James Ltd., Macquarie Private Wealth Inc. and Dundee Securities Ltd.

A preliminary short-form prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary short-form prospectus may be obtained from any of the agents named above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final short-form prospectus has been issued.

SOURCE: Pathfinder Convertible Debenture Fund

For further information:

Please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868.