NewGrowth Corp. Announces Reorganization Proposal
TORONTO, Feb. 7, 2014 /CNW/ - NewGrowth Corp. (the "Company") announced today that its Board of Directors has approved a proposal to reorganize the Company. The reorganization will permit holders of Capital Shares to extend their investment in the Company beyond the scheduled redemption date of June 26, 2014 for an additional five years. The Preferred Shares will be redeemed on the same terms originally contemplated in their share provisions on June 26, 2014. Holders of Capital Shares who do not wish to extend their investment and all holders of Preferred Shares will have their shares redeemed on June 26, 2014.
The reorganization will involve (i) the extension of the originally scheduled redemption date, (ii) adjusting and rebalancing the portfolio, (iii) a special retraction right to enable holders of Capital Shares to retract their shares as originally contemplated should they not wish to extend their investment and (iii) the issuance of new preferred shares in order to provide continuing leverage for the Capital Shares. The Company may also offer additional Capital Shares at the time of the preferred share offering.
A special meeting of holders of the Capital Shares will be held on March 26, 2014 to consider and vote upon the proposed reorganization. Details of the proposed reorganization will be outlined in an information circular to be prepared and delivered to holders of Capital Shares of record on February 20, 2014 in connection with the special meeting and will be available on www.sedar.com. Implementation of the proposed reorganization will also be subject to applicable regulatory approval including the Toronto Stock Exchange.
NewGrowth Corp. is a mutual fund corporation whose investment portfolio consists of publicly-listed securities of selected Canadian chartered banks, telecommunication, pipeline and utility issuers. The Capital Shares and Preferred Shares of NewGrowth Corp. are listed for trading on the Toronto Stock Exchange under the symbols NEW.A and NEW.PR.C respectively.
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