TORONTO, Sept. 29, 2011 /CNW/ - Jovian Capital Corporation ("Jovian") (TSX:JOV) and its subsidiary BetaPro Management Inc. ("BetaPro")*, the manager of the Horizons BetaPro exchange traded funds ("Horizons ETFs"), are pleased to announce that, further to the announcement of May 19,
2011, BetaPro has exercised its pre-emptive rights to subscribe for one
Class A share of BetaShares Holdings Pty Ltd. ("BetaShares") for a subscription price of $2,000,000 (Australian) (the "Class A Share"). BetaShares is a private Australian holding company whose
subsidiary, BetaShares Capital Limited, offers exchange traded funds ("ETFs") on the Australian Securities Exchange.
The Class A Share is convertible into ordinary shares in the capital of
BetaShares on December 31, 2011, at a conversion ratio that adjusts
based on the completion of certain milestones by BetaShares by that
date, and will result in BetaPro increasing its ownership of BetaShares
total equity by between 5.1% and 6.1%. As at August 31, 2011, BetaPro
owned approximately 40% of the ordinary shares outstanding. As part of
the subscription, BetaPro has entered into an option agreement with
BetaShares entitling BetaPro (the "Option") to purchase additional shares of BetaShares sufficient to bring
BetaPro's equity holdings of BetaShares to 50%. The exercise price of
the Option adjusts based on the conversion price implicit in the
conversion price of the Class A Share.
Adam Felesky, C.E.O. of BetaPro said, "The continued growth and success of the BetaShares ETFs on the
Australian Exchange is very encouraging. Increasing our investment in
BetaShares is one more positive step for Horizons ETFs in growing its
global ETF presence."
*As announced on July 15, 2011, Jovian has entered into a definitive
agreement to sell its exchange traded fund business to Mirae Asset
Global Investments Co., Ltd. ("Mirae Asset"), conditional on the completion of a number of obligations by both
parties up to and including the closing date. Closing is anticipated to
occur by mid-November, and is subject to several conditions including,
but not limited to, regulatory and contractual consents and approvals,
both domestic and foreign. In anticipation of closing the transaction,
an affiliate of Mirae Asset has provided $2,100,000 CAD in subordinated
debt to BetaPro to fund the subscription price of the Class A Share.
About Jovian Capital Corporation (www.joviancapital.com)
Jovian acquires, creates and grows financial services companies
specializing in three primary market segments: wealth management,
traditional asset managers, and exchange traded fund asset managers.
The Jovian group of companies (AlphaPro Management Inc., BetaPro
Management Inc., Hahn Investment Stewards & Company Inc., Horizons
Exchange Traded Funds Inc., JovFunds Management Inc., JovInvestment
Management Inc., Leon Frazer & Associates Inc., MGI Financial Inc., MGI
Securities Inc., MGI Securities (USA) Inc. and T.E. Wealth) manages
approximately $13.5 billion of client assets ($8.0 billion in assets
under management and $5.5 billion in assets under administration).
Additional information is available at www.joviancapital.com and www.sedar.com.
SOURCE Jovian Capital Corporation
For further information:
Don Sangster, Investor Relations, Jovian Capital Corporation, (416) 933-5744; or
Philip Armstrong, Chief Executive Officer, Jovian Capital Corporation, (416) 933-5752.