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TORONTO, Nov. 18, 2015 /CNW/ - Cymbria Corporation (TSX: CYB) ("Cymbria") announced today that it is calling a special meeting ("Meeting") of its holders of Class A shares and Class J shares (collectively, the "Shares"). The Meeting will be held at the offices of Stikeman Elliott LLP at 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario on December 15, 2015 at 10:00 a.m. local time.
At the Meeting, holders ("Shareholders") of the Shares, voting together as a single class, will be asked to consider the ordinary resolution approving the proposed transition of Cymbria from the Canadian securities regulatory regime for investment funds to the regulatory regime for reporting issuers that are not investment funds (the "Proposed Transition").
Reasons for Proposed Transition
The Proposed Transition is a result of new closed-end investment fund rules introduced by the Canadian Securities Administrators that will come into force on March 21, 2016. The new rules will restrict closed-end funds, like Cymbria, from taking an ownership position of more than 10% in, or exercising control of, the companies in which they invest.
In the view of Cymbria's manager, EdgePoint Investment Group Inc. (the "Manager") and Cymbria's board of directors, the new rules would compromise Cymbria's ability to continue to fulfill its investment objective of providing Shareholders with long-term capital appreciation through an actively managed portfolio comprised primarily of global equity securities and an investment in EdgePoint Wealth Management Inc. Cymbria's ability, since the time of its initial public offering, to make virtually any investment (regardless of relative or absolute size) that meets its investment objective is, in the Manager's view, what helps make Cymbria a compelling investment and distinguishes Cymbria from most non-redeemable investment funds.
As a result of these developments, the Manager and Cymbria's board of directors have concluded it is in the best interests of Cymbria and its Shareholders to implement the Proposed Transition.
The Proposed Transition would result in Cymbria no longer being an investment fund under applicable securities laws and therefore not subject to the new investment restrictions applicable to closed-end investment funds. Shareholders will see no significant change in the way Cymbria operates after the Proposed Transition, except for the timing and the manner in which it reports to shareholders, which will be in compliance with the rules applicable to non-investment fund reporting issuers. If approved, the Proposed Transition would take effect on January 1, 2016.
ABOUT CYMBRIA CORPORATION
Cymbria's investment objective is to provide shareholders with long-term capital appreciation through an actively managed portfolio comprised primarily of global equities and an investment in EdgePoint Wealth Management Inc. Cymbria began trading on the TSX on November 4, 2008 under the symbol CYB.
SOURCE Cymbria Corporation
For further information: Patrick Farmer at 416.963.9353 or firstname.lastname@example.org.