/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
TORONTO, July 17, 2012 /CNW/ - Faircourt Asset Management Inc., the
manager of Faircourt Split Trust (the "Trust") (TSX: FCS.UN; FCS.PR.B),
is pleased to announce that it has filed a preliminary short form
prospectus for an offering of warrants to unitholders of the Trust (the
"Offering"). Each unitholder will receive one whole Series C warrant
(each, a "Series C Warrant") for each unit of the Trust (each, a
"Unit") on the record date which will be determined upon filing of the
Each Series C Warrant will entitle the holder thereof to purchase one
Unit, one half of a 6.25% preferred security of the Trust (each, a
"Preferred Security") and one Series D warrant (each, a "Series B
Warrant") upon payment of the subscription price, which will be
determined as the lesser of (i) $10.23 (which is the sum of (a) the
most recently calculated NAV per Unit prior to the date of the
preliminary short form prospectus, (b) $5.00 (which is one-half of the
principal amount of a Preferred Security) and (c) the estimated per
Unit fees and expenses of the Offering), and (ii) the most recently
calculated NAV per Unit prior to the date of the filing of the final
short form prospectus plus $5.00 (which is one-half of the principal
amount of a Preferred Security) and the estimated per Unit fees and
expenses of the Offering. The Trust has applied to list the Series C
Warrants, and the securities issuable upon the exercise thereof on the
Toronto Stock Exchange.
Each Series D Warrant will entitle the holder on and only on June 27,
2013 to subscribe for one Unit at the subscription price which will be
determined upon filing of the final prospectus.
Successful completion of the Offering will (a) provide the Trust with
additional capital that can be used to take advantage of attractive
investment opportunities; (b) increase the trading liquidity of the
Units; (c) reduce the leverage associated with the Preferred Securities
of the Trust which has increased in recent years due to market
conditions and the redemption of Units; (d) bring the Trust closer to
achieving a matched position where the number of outstanding Units and
Preferred Securities are equal; and (e) reduce the management expense
ratio of the Trust.
Certain statements contained in this news release constitute
forward-looking information. Forward-looking information may relate to
matters disclosed in this press release and to other matters identified
in public filings relating to the Trust, to the future outlook of the
Trust and anticipated events or results and may include statements
regarding the future financial performance of the Trust. In some cases,
forward-looking information can be identified by terms such as "may",
"will", "should", "expect", "plan", "anticipate", "believe", "intend",
"estimate", "predict", "potential", "continue" or other similar
expressions concerning matters that are not historical facts. Actual
results may vary from such forward-looking information.
SOURCE Faircourt Asset Management Inc.
For further information:
please contact: Faircourt Asset Management Inc. at (416) 364-8989 or 1-800-831-0304 or visit our website at www.faircourtassetmgt.com.