TORONTO, March 13 /CNW/ - Middlefield is pleased to announce its
intention to merge INDEXPLUS Income Fund ("INDEXPLUS" or the "Continuing
Fund") (TSX: IDX.UN), Middlefield Equal Sector Income Fund ("Equal Sector")
(TSX: ESF.UN) and HTR Total Return Fund ("HTR") (TSX: HTR.UN) (collectively,
the "Funds") with INDEXPLUS being the Continuing Fund. The merger is intended
to combine three funds with substantially similar portfolio compositions in
order to provide unitholders with the opportunity to hold units of a
continuing fund that offers a larger market capitalization, increased trading
liquidity and lower operating costs on a per unit basis.
Completion of the merger is expected to take place on or about
May 26, 2008 (the "Effective Date") and is subject to all regulatory
requirements and customary closing conditions being satisfied. The merger will
be effected on a tax-deferred "rollover" basis at an exchange ratio calculated
as the net asset value per unit of each terminating fund divided by the net
asset value per unit of the Continuing Fund, determined as at the close of
trading on the Toronto Stock Exchange on the business day immediately prior to
the Effective Date.
Following completion of the merger, it is expected that the Continuing
Fund will pay distributions at INDEXPLUS's current annualized rate of
$1.20 per unit. Assuming the merger occurs on or before May 31, 2008, new
unitholders of the Continuing Fund as a result of the merger will be entitled
to the monthly distribution to be declared by INDEXPLUS to unitholders of
record on May 31, 2008, which will be paid in mid June 2008.
Unitholders who do not wish to participate in the planned merger and
become unitholders of INDEXPLUS will have the opportunity to redeem their
units before the merger occurs. In order to provide unitholders with this
option, the annual redemption date for Equal Sector will be moved up from
November 30, 2008 to April 30, 2008, which is also the annual redemption date
for HTR. The required redemption notice period for each terminating fund has
been reduced to 15 business days prior to April 30, 2008, being April 9, 2008.
Surrendered units will be redeemed at a price calculated with reference to the
net asset value per unit in accordance with the respective terminating fund's
declaration of trust.
INDEXPLUS trades under the symbol IDX.UN on the Toronto Stock Exchange.
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 expected completion thereof; the expected
benefits of the merger; future distributions to be made by the Continuing
Fund; 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, some of which are beyond the control of the Funds.
For further information:
For further information: Nancy Tham, Senior Vice President, at (416)