TORONTO, March 26, 2014 /CNW/ - NewGrowth Corp. (the "Company")
announced today that holders of its Class A Capital Shares ("Capital
Shares") have overwhelmingly approved a share capital reorganization
(the "Reorganization") allowing holders of Capital Shares, at their
option, to retain their investment in the Company after the scheduled
redemption date of June 26, 2014. The Reorganization will permit
holders of Capital Shares to extend their investment in the Company
beyond the redemption date of June 26, 2014 for up to an additional 5
years. The Class B Preferred Shares, Series 2 will be redeemed on the
same terms originally contemplated in their share provisions on June
26, 2014. In order to maintain the leveraged "split share" structure of
the Company, the Company expects to create and issue a new series of
Class B preferred shares on or about June 26, 2014.
Holders of Capital Shares electing to retain their investment in the
Company will continue to enjoy the benefit of a leveraged participation
in the capital appreciation of the Company's portfolio while
potentially deferring any capital gains tax liability which would
otherwise be realized on the redemption of their Capital Shares. As
part of the Reorganization, the Company's portfolio of common shares of
Canadian chartered banks, telecommunication, utility and pipeline
companies will be expanded to include selected issuers in the oil and
gas sector and will be rebalanced to equal weight.
Holders of Capital Shares who do not wish to continue their investment
in the Company after June 26, 2014 must give notice that they wish to
exercise their special retraction right and how they wish to be paid
for their shares on or prior to April 18, 2014. Holders of Capital
Shares who retract their Capital Shares will be paid on June 26, 2014.
The Reorganization will become effective provided that holders of at
least 1,287,000 Capital Shares retain their Capital Shares and do not
exercise the special retraction right.
SOURCE: NewGrowth Corp.
For further information:
Web site: www.scotiamanagedcompanies.com