NewGrowth Corp. Announces Minimum Share Condition Has Been Satisfied

TORONTO, April 21, 2014 /CNW/ - NewGrowth Corp. (the "Company") announced today that the final condition required to extend the term of the Company for an additional five years to June 26, 2019 has been met as holders of 97.2% of Class A Capital Shares have elected to extend. Holders of Class A Capital Shares previously approved the extension of the term of the Company subject to the condition that a minimum of 1,287,000 Class A Capital Shares remain outstanding after giving effect to the special retraction right (the "Special Retraction Right").

Under the Special Retraction Right, 72,755 Class A Capital Shares have been tendered to the Company for retraction on June 26, 2014. The holders of the remaining 2,500,623 Class A Capital Shares will continue to enjoy the benefits 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 Class A Capital Shares. As part of the extension, 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.

The Company's Class B preferred shares, Series 2 (the "Series 2 Preferred Shares") will be redeemed by the Company on June 26, 2014 in accordance with their redemption provisions at a price per share equal to the lesser of $13.70 and the Net Asset Value per Unit. In order to maintain the leveraged "split share" structure of the Company, the Company intends to create and issue a third series of Class B preferred shares (the "Series 3 Preferred Shares"), which are expected to be issued immediately following this redemption. In addition, the Company may also undertake a concurrent public offering of additional Class A Capital Shares at the same time the Series 3 Preferred Shares are offered.

NewGrowth Corp. is a mutual fund corporation whose Class A Capital Shares and Preferred Shares are listed for trading on the Toronto Stock Exchange under the symbols NEW.A and NEW.PR.C respectively.

SOURCE: NewGrowth Corp.

For further information:

Investor Relations
NewGrowth Corp.
(416) 862-3931
Web site:

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890