TORONTO, March 11 /CNW/ - COMPASS Income Fund (the "Fund") is pleased to announce that it has filed a final prospectus in connection with an offering of Rights to its unitholders to subscribe for Units (the "Rights Offering"). Unitholders of record at the close of business (Toronto time) on March 19, 2010 will receive one Right for each MINT Unit held on the record date. The Rights will commence trading on the Toronto Stock Exchange under the symbol CMZ.RT on March 17, 2010. One Right will entitle the holder to purchase one COMPASS Unit at a price of $9.50 until 4:00 p.m. (Toronto time) on April 16, 2010, at which time all unexercised Rights will expire. The closing of exercised Rights is expected to occur shortly thereafter. If all the Rights are exercised, the Fund will issue approximately 6 million Units and receive net proceeds of approximately $56 million. The subscription price of $9.50 represents a discount to the trading price of approximately 8% as at March 5, 2010.
Each holder of Rights who has initially subscribed for Units under the Basic Subscription Privilege may subscribe for any number of additional Units, if available, at a price equal to the subscription price for each additional Unit, subject to availability. Units issued pursuant to this Rights Offering will participate in the April 2010 distribution. The directors and officers of the Manager who own Units intend to exercise all their Rights to acquire Units under the Basic Subscription Privilege.
The net proceeds of the Rights Offering will be invested by the Fund in accordance with its investment objectives. The Fund's investment objectives are: (i) to pay monthly distributions to holders of Units; and (ii) to return at least the original issue price of the Units (being $10.00 per Unit) to Unitholders upon termination of the Fund. The Fund diligently selects and actively manages a diversified portfolio comprised primarily of high yielding equity securities of issuers operating in various industries and geographic regions.
COMPASS Income Fund trades on the Toronto Stock Exchange under the symbol CMZ.UN.
This offering is only made by prospectus. The prospectus contains important detailed information about the Fund being offered. Copies of the prospectus may be obtained from your IIROC registered financial advisor. Investors should read the prospectus before making an investment decision.
SOURCE COMPASS Income Fund
For further information: For further information: or to obtain a copy of the prospectus, please visit our website at www.middlefield.com or contact Nancy Tham, Senior Vice-President, at (416) 847-5349 or toll-free at 1-888-890-1868.