TORONTO, Jan. 27, 2012 /CNW/ - Middlefield Group, on behalf of
Middlefield Income Plus II Corp. ("Income Plus II" or the "Fund"), is
pleased to announce that it has filed a preliminary prospectus in
relation to an initial public offering of equity shares (the "Shares")
at a price of $12.00 per Share.
Income Plus II has been designed to provide investors with monthly cash
distributions and the potential for capital appreciation. The Fund will
be actively managed and initially comprised of 70% high dividend paying
common shares and 30% fixed income securities of Canadian issuers that
offer attractive opportunities for both stable income and capital
The Fund will employ an investment strategy which is similar to that of
Middlefield Income Plus Class mutual fund, which was launched in
September 2000 and has maintained a consistent $0.07 per share monthly
distribution since 2003.
Middlefield Capital Corporation will act as the investment advisor to
The Fund's investment objectives are to provide holders of Shares with:
(i) stable monthly cash distributions; and
(ii) the opportunity for capital appreciation while emphasizing capital
Based on current estimates, the initial target distribution yield for
the Fund is expected to be 6.00% per annum based on the original
subscription price (or $0.06 per Share per month or $0.72 per Share per
Middlefield Limited, the manager, intends that on or about March 27,
2014, the Fund will, subject to receipt of any regulatory approvals
required, amalgamate on a tax-deferred basis with Middlefield Income
Plus Class mutual fund.
Prospective purchasers investing in Income Plus II will have the option
of paying for Shares in cash or by exchanging securities of issuers
listed in the preliminary prospectus. Prospective purchasers under the
exchange option will be required to deposit their exchange eligible
securities prior to 5:00 p.m. (Toronto time) on February 23, 2012 in
the manner described in the preliminary prospectus.
The syndicate of agents is being co-led by CIBC World Markets Inc. and
RBC Capital Markets and includes BMO Capital Markets, National Bank
Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord
Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc.,
Raymond James Ltd., Middlefield Capital Corporation, Dundee Securities
Ltd. and Mackie Research Capital Corporation.
A preliminary prospectus containing important information relating to
these securities has been filed with securities commissions or similar
authorities in certain jurisdictions of Canada. The preliminary
prospectus is still subject to completion or amendment. Copies of the
preliminary prospectus may be obtained from any of the agents named
above. There will not be any sale or any acceptance of an offer to buy
the securities until a receipt for the final prospectus has been
SOURCE Middlefield Income Plus II Corp.
For further information:
please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868