Global Healthcare Dividend Fund confirms intention to merge with Middlefield's Healthcare Mutual Fund

UNITHOLDER MEETINGS TO BE HELD NOVEMBER 22, 2016

CALGARY, Oct. 11, 2016 /CNW/ - Middlefield Limited, on behalf of Global Healthcare Dividend Fund (the "Fund"), is pleased to announce that, as described in its initial public offering prospectus dated September 24, 2014, the Fund intends to merge with Middlefield Global Healthcare Dividend Fund (the "Mutual Fund") on or about December 20, 2016, with the Mutual Fund being the continuing fund.

The merger is expected to benefit unitholders of the Fund by providing an opportunity to hold units of the Mutual Fund, an open-end mutual fund that offers daily purchases and redemptions at Net Asset Value. In addition, the merger is expected to benefit unitholders of both funds by providing for increased portfolio diversification and a reduction in general and administrative costs.

Completion of the merger is subject to the receipt of all necessary approvals, including regulatory approval and the approval of the unitholders of each fund, and customary closing conditions. The merger will be effected on a tax-deferred "rollover" basis at an exchange ratio calculated as the Net Asset Value per unit of the Fund divided by the Net Asset Value per Series A unit of the Mutual Fund, determined as of the close of trading on the Toronto Stock Exchange on the business day immediately prior to the effective date of the merger.

Information About Global Healthcare Dividend Fund

Since its inception on October 23, 2014, the Fund has consistently generated returns that have exceeded both the S&P/TSX Composite and MSCI Daily World Gross Health Care indices, as illustrated in the table below.

Fund/Benchmark

1-Year

Since Inception

Global Healthcare Dividend Fund (GHC.UN)

7.6%

15.8%

MSCI Daily World Gross Health Care Index

5.3%

5.3%

S&P/TSX Composite Index                                   

14.2%

4.7%

Source:

Bloomberg, Middlefield. As at September 30, 2016. Figures reflect annualized total returns, net of fees.

Information About Middlefield Global Healthcare Dividend Fund (the Mutual Fund)

Investment Objective - The objective of the Mutual Fund is to maximize long-term risk-adjusted total return by investing primarily in equity securities of global issuers operating in, or deriving a significant portion of their revenue or earnings from, the healthcare industry.

Distribution - On October 4, 2016, the Mutual Fund announced that it will be initiating a quarterly distribution of $0.05 per unit commencing in the first quarter of 2017, representing an annualized distribution of $0.20 per unit. The distribution is supported by a portfolio of healthcare and healthcare related issuers that are generating strong cash flows and displaying prudent capital allocation.

Industry Advisor – The Mutual Fund will continue to benefit from Middlefield's ongoing exclusive relationship with SSR LLC, the Healthcare Industry Advisor. Dr. Richard Evans, SSR's co-founder, will be the individual primarily responsible for providing services on behalf of SSR. Dr. Evans served as a Senior Analyst covering the U.S. pharmaceuticals industry at Sanford C. Bernstein & Co., LLC from 1998 until 2006. He was twice ranked first among his peers for drug stock selection by Bloomberg Markets, and in 2006 was ranked among the top 20 stock pickers worldwide, also by Bloomberg Markets. Dr. Evans was named to the Institutional Investor's All-America Research Team for much of his tenure.

Information about the Special Meeting

A special meeting of the unitholders of each fund for the purposes of considering the merger will be held on November 22, 2016 commencing at 10:00 a.m. (Toronto time) at the offices of Fasken Martineau DuMoulin LLP, 333 Bay Street, Suite 2400, Bay Adelaide Centre, Toronto, ON, M5H 2T6. Details of the proposed merger will be contained in a joint management information circular which will be mailed to unitholders of record of both funds as of the close of business on October 20, 2016. After considering the joint management information circular and related meeting materials, unitholders of each fund are encouraged to complete and return their proxy forms in order that their units can be voted at the applicable meeting.

If unitholders of either the Fund or Mutual Fund do not approve the merger, the funds will continue to operate as they have since their respective inception dates, with no changes to their respective investment objectives, investment strategy or investment restrictions and, in the case of the Fund, with no change to its ability to use leverage to pursue its investment objectives. In addition, in the event the merger is not effected the Fund will implement an annual redemption right as of January 31 of each year, commencing in 2017, for redemption proceeds per unit equal to its net asset value per unit.

Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to: the proposed timing of the merger and completion thereof; the benefits of the merger; and the funds that are proposed to be merged. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of each fund. There are no assurances the funds can fulfill such forward-looking statements and the funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the funds, many of which are beyond the control of the funds.

SOURCE Global Healthcare Dividend Fund

For further information: on either fund, including their respective annual reports, please visit our website at www.middlefield.com or contact Nancy Tham or Michael Bury in our Sales and Marketing department at 1.888.890.1868


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