TORONTO, June 1 /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, 2014 has been met. Holders of Class A
Capital Shares previously approved the extension of the term of the Company
subject to the condition that a minimum of 1,340,000 Class A Capital Shares
remain outstanding after giving effect to the special retraction right (the
"Special Retraction Right").
Under the Special Retraction Right, 88,897 Class A Capital Shares have
been tendered to the Company for retraction on June 26, 2009. Holders of these
shares will receive a retraction price equal to the amount, if any, by which
the Unit Value exceeds $18.25. Holders of the remaining 2,238,510 Class A
Capital Shares will continue to enjoy the benefits of a leveraged
participation in the capital appreciation of the Company's portfolio of
publicly listed common shares of selected Canadian chartered banks,
telecommunication, pipeline and utility companies.
The Class B Preferred Shares will be redeemed by the Company on June 26,
2009 in accordance their terms at a price per share equal to the lesser of
$18.25 and Unit Value. In order to maintain the leveraged "split share"
structure of the Company, the Company will offer a new series of Class B
Preferred Shares to be called the Series 2 Preferred Shares pursuant to a
preliminary prospectus dated May 22, 2009.
NewGrowth Corp. is a mutual fund corporation whose investment portfolio
consists primarily of publicly-listed common shares of selected Canadian
chartered banks, telecommunication, pipeline and utility companies. The Class
A Capital Shares and Class B Preferred Shares of NewGrowth Corp. are both
listed for trading on The Toronto Stock Exchange under the symbols NEW.A and
For further information:
For further information: Investor Relations: NewGrowth Corp., (416)
862-3931, E-mail: firstname.lastname@example.org, Web site:
www.scotiamanagedcompanies.com, 40 King Street West, 26th Floor, Toronto,
Ontario, M5W 2X6, Tel: (416) 862-3931, Fax: (416) 863-7425