O'Leary Canadian Income Opportunities Fund 2 Announces Exchange Ratios

MONTREAL, Dec. 10 /CNW/ - O'Leary Funds Management LP (the "Manager"), the trustee and manager of O'Leary Canadian Income Opportunities Fund 2 (the "Fund") is pleased to announce the exchange ratios for the exchange offer by the Fund (the "Exchange Option") being made under the final prospectus for the Fund dated November 26, 2010. The closing of the initial public offering of Units is scheduled to occur on December 17, 2010.

The Fund was created to invest in an actively-managed portfolio comprised primarily of publicly-traded securities of issuers domiciled in Canada providing investors with both income and potential for capital appreciation. The Fund's investment objectives are to (i) maximize total return for holders of trust units of the Fund ("Unitholders"), consisting of distributions, interest and dividend income and capital appreciation; and (ii) to initially provide Unitholders with monthly distributions targeted to be $0.08 per Unit ($0.96 per annum representing an annual cash distribution of 8% based on the $12.00 per Unit issue price).

The Manager has retained Stanton Asset Management Inc. (the "Portfolio Advisor") to provide investment advisory services to the Fund. The Portfolio Advisor is a Canadian investment firm focused on global investment opportunities, and is also the manager of a variety of specialized funds.

On or about December 14, 2012, the Fund will become an open-end mutual fund, the Units of the Fund will be delisted and the Units will become redeemable at their net asset value per Unit on a daily basis.

Prospective purchasers may purchase Units either by cash payment or by an exchange of freely tradable securities of each class or series of securities described in the table below.

The number of Units issuable in exchange for the securities of an exchange eligible issuer (the "Exchange Ratio") deposited by a prospective purchaser pursuant to the Exchange Option was determined for dividend-paying equities, income trusts and exchange traded funds by dividing the volume weighted average trading price of such securities on the Toronto Stock Exchange during the five consecutive trading days ending on December 9, 2010 (the "Pricing Period"), as adjusted to reflect distributions declared by any Exchange Eligible Issuer that will not be received by the Fund, by $12.00. For greater certainty, the distribution payable on the securities of any Exchange Eligible Issuer that are deposited under the Exchange Option and which have a record date before the Closing will be received by the prospective purchaser who deposited such securities and not by the Fund. The Exchange Ratios will be rounded down to four decimal places.

The table below sets out the Exchange Eligible Issuers, the securities of which may be accepted by the Fund pursuant to the Exchange Option including the name of the Exchange Eligible Issuer, its CUSIP number, its ticker symbol, its volume weighted average trading price during the Pricing Period and the Exchange Ratios.

Income Trusts & Common Equity

Name: CUSIP Symbol Volume Weighted
Average Trading Price
Exchange Ratio
A&W REVENUE ROYALTIES IN-UTS 000255109 AW-U CT 20.1404 1.6695
AG GROWTH INTERNATIONAL INC 001181106 AFN CT 48.4874 4.0406
AGRIUM INC 008916108 AGU CT 84.2029 7.0169
ALARIS ROYALTY CORP 01163Q202 AD CT 11.5469 0.9622
ALGONQUIN POWER & UTILITIES 015857105 AQN CT 4.8224 0.4018
ALLIED PROPERTIES REAL ESTAT 019456102 AP-U CT 21.789 1.8157
ALTAGAS LTD 021361100 ALA CT 20.7005 1.7250
ALTUS GROUP INCOME FUND 02215E106 AIF-U CT 12.9205 1.0767
ARC ENERGY TRUST-UNITS 001986108 AET-U CT 24.57 2.0475
ARMTEC INFRASTRUCTURE INCOME 041900101 ARF-U CT 15.8763 1.3230
ARTIS REAL ESTATE INVESTMENT 04315L105 AX-U CT 12.4766 1.0397
AVENIR DIVERSIFIED INCOME TR 05356Q200 AVF-U CT 6.2165 0.5180
BADGER INCOME FUND 05651Q103 BAD-U CT 18.4539 1.5378
BARRICK GOLD CORP 067901108 ABX CT 54.4701 4.5391
BAYTEX ENERGY TRUST-UNITS 073176109 BTE-U CT 45.0087 3.7507
BELL ALIANT REGIONAL COMMUNI 07786J103 BA-U CT 26.6985 2.2248
BIRD CONSTRUCTION INCOME FUN 090762105 BDT-U CT 34.033 2.8360
BLACK DIAMOND GROUP LTD 09202D207 BDI CT 20.9663 1.7471
BOARDWALK REAL ESTATE INVEST 096631106 BEI-U CT 40.8531 3.4044
BONAVISTA ENERGY TRUST 098536105 BNP-U CT 28.3264 2.3605
BONTERRA ENERGY CORP 098546104 BNE CT 44.6087 3.6990
BORALEX POWER INCOME-UNIT 09951T106 BPT-U CT NA NA
BOSTON PIZZA ROYALTIES-UNITS 101084101 BPF-U CT 13.9403 1.1616
BOYD GROUP INCOME FUND 103309100 BYD-U CT 7.3046 0.6087
BROOKFIELD ASSET MGMNT 112585120 BAM.PR.P 27.68240849 2.2704
BROOKFIELD PROPERTIES 112900857 BPO.PR.L 26.63788062 2.1846
BROOKFIELD REAL ESTATE SERVI 112831102 BRE-U CT 13.8479 1.1539
BROOKFIELD RENEWABLE POWER 112834130 BRC-U CT 20.8403 1.7366
CALLOWAY REAL ESTATE INVESTM 131253205 CWT-U CT 23.1519 1.9293
CAMECO CORP 13321L108 CCO CT 37.9177 3.1598
CAN APARTMENT PROP REAL ESTA 134921105 CAR-U CT 17.092 1.4243
CAN REAL ESTATE INVEST TRUST 13650J104 REF-U CT 31.3895 2.6157
CANADIAN ENERGY SERVICES & T 13566W108 CEU CT 26.3081 2.1923
CANADIAN HELICOPTERS INCOME 136002102 CHL-U CT 15.9723 1.3310
CANADIAN OIL SANDS TRUST 13642L100 COS-U CT 25.0723 2.0893
CANEXUS INCOME FUND 13751R104 CUS-U CT 6.8456 0.5704
CANFOR PULP INCOME FUND 137582102 CFX-U CT 14.3541 1.1961
CANWEL BUILDING MATERIALS 13874X103 CWX CT 4.6841 0.3903
CAPITAL POWER CORP 14042M102 CPX CT 23.9492 1.9957
CAPITAL POWER INCOME LP 14042N100 CPA-U CT 17.3303 1.4441
CARFINCO INCOME FUND 14178B102 CFN-U CT 7.3804 0.6150
CARGOJET INCOME FUND 14179E105 CJT-U CT 8.1936 0.6828
CERVUS EQUIPMENT CORP 15712L100 CVL CT NA NA
CHARTWELL SENIORS HOUSING RE 16140U100 CSH-U CT 7.981 0.6650
CHEMTRADE LOGISTICS INCOM FD 16387P103 CHE-U CT 14.3922 1.1993
CINEPLEX GALAXY INCOME FUND 172453102 CGX-U CT 22.7074 1.8922
CML HEALTHCARE INCOME FUND 12582P105 CLC-U CT 11.9417 0.9877
COLABOR GROUP INC 192667103 GCL CT 11.8492 0.9874
COMINAR REAL ESTATE INV-TR U 199910100 CUF-U CT 21.4384 1.7865
CONSUMERS' WATERHEATER INCOM 210724100 CWI-U CT 6.4985 0.5415
CRESCENT POINT ENERGY CORP 22576C101 CPG CT 42.9476 3.5789
CROMBIE REAL ESTATE INVESTME 227107109 CRR-U CT 12.7996 1.0666
DATA GROUP INCOME FUND 23768U107 DGI-U CT 6.3763 0.5313
DAVIS + HENDERSON INCOME FND 239058100 DHF-U CT 19.7618 1.6468
DAYLIGHT ENERGY LTD 239590201 DAY CT 9.9694 0.8307
DIRECTCASH INCOME FUND 25457R105 DCI-U CT 22.8731 1.9060
DUNDEE REAL ESTATE INVESTMEN 265270207 D-U CT 29.7824 2.4818
ENBRIDGE INC 29250N105 ENB CT 56.4091 4.7007
ENERPLUS RESOURCES FUND 29274D604 ERF-U CT 30.3729 2.5160
EXCHANGE INCOME CORP 301283107 EIF CT 17.3162 1.4430
EXTENDICARE REAL ESTATE INVE 302251103 EXE-U CT 8.9738 0.7478
FIRM CAP MTGE INV FND-UTS 318324100 FC-U CT 11.7461 0.9788
FIRST CAPITAL REALTY INC 31943B100 FCR CT 15.269 1.2724
FIRST NATIONAL FINANCIAL INC 321135105 FN-U CT 18.93 1.5775
FOREMOST INCOME FUND 345492102 FMO-U CT 6.0829 0.4985
FORT CHICAGO ENERGY-CLASS A 346921109 FCE-U CT 12.576 1.0480
FREEHOLD ROYALTY TRUST UTS 355904103 FRU-U CT 19.5455 1.6287
FUTUREMED HEALTHCARE INCOME 36116H107 FMD-U CT 6.3786 0.5315
GAMEHOST INCOME FUND 36466U104 GH-U CT 9.5467 0.7955
GENIVAR INCOME FUND 372301101 GNV-U CT 28.4622 2.3718
GOLDCORP INC 380956409 G CT 47.0146 3.9153
GROUPE AEROPLAN INC 399453109 AER CT 13.3269 1.1105
H&R REAL ESTATE INV-REIT UTS 404428203 HR-U CT 19.7321 1.6383
HOMBURG CANADA REAL ESTATE I 436870109 HCR-U CT 10.9732 0.9144
IBI INCOME FUND 449213107 IBG-U CT 14.3369 1.1947
INNERGEX RENEWABLE ENERGY 45790B104 INE CT 9.7037 0.8086
INNVEST REAL ESTATE INVESTME 45771T108 INN-U CT 6.6612 0.5551
INTER PIPELINE FUND LP-A 45833P102 IPL-U CT 14.8051 1.2337
JAZZ AIR INCOME FUND 47214X100 JAZ-U CT 5.1325 0.4277
JUST ENERGY INCOME FUND 48213T108 JE-U CT 14.4339 1.1942
K-BRO LINEN INCOME FUND 482427101 KBL-U CT 18.9328 1.5777
KEG ROYALTIES INCOME FUND-UT 487522104 KEG-U CT 12.214 1.0178
KEYERA FACILITIES INCOME FD 493272108 KEY-U CT 35.3655 2.9471
KILLAM PROPERTIES INC 494104870 KMP CT 10.4356 0.8696
LABRADOR IRON ORE ROYALTY CO 505440115 LIF-U CT 68.2691 5.6890
LEISUREWORLD SENIOR CARE COR 52542T102 LW CT 10.4562 0.8713
LIQUOR STORES INCOME FUND 536345200 LIQ-U CT 15.235 1.2695
MACQUARIE POWER & INFRASTRUC 556084101 MPT-U CT 7.8466 0.6538
MEDICAL FACILITIES CORP-IPS 58457V206 DR-U CT 10.416 0.8680
MORGUARD REAL ESTATE-TR UTS 617914106 MRT-U CT 14.76 1.2237
MORNEAU SOBECO INCOME FUND 61767T101 MSI-U CT 9.581 0.7984
MULLEN GROUP LTD 625284104 MTL CT 15.7695 1.3141
NAL OIL & GAS TRUST-UTS 628949109 NAE-U CT 12.2988 1.0249
NEW FLYER INDUSTRIES INC-IDS 64438R306 NFI-U CT 11.07 0.9225
NORTH WEST COMPANY FUND 662906106 NWF-U CT 21.2722 1.7726
NORTHERN PROPERTY REAL ESTAT 665624102 NPR-U CT 27.3058 2.2754
NORTHLAND POWER INCOME TR UT 666910104 NPI-U CT 15.7394 1.3116
NORTHWEST HEALTHCARE PROPERT 667495105 NWH-U CT 11.4825 0.9568
PARKLAND INCOME FUND-UNIT 70137Q101 PKI-U CT 11.1466 0.9288
PEMBINA PIPELINE CORP 706327103 PPL CT 21.2117 1.7676
PENGROWTH ENERGY TRUST 706902509 PGF-U CT 13.1848 1.0987
PENN WEST ENERGY TRUST 707885109 PWT-U CT 22.1445 1.8453
PERPETUAL ENERGY INC 714270105 PMT CT 4.0418 0.3368
PEYTO ENERGY TRUST 717045108 PEY-U CT 17.761 1.4800
PHOENIX TECHNOLOGY INCOME FU 71915R105 PHX-U CT 11.9367 0.9947
PIZZA PIZZA ROYALTY INCOME F 725852107 PZA-U CT 7.7251 0.6437
POTASH CORP OF SASKATCHEWAN 73755L107 POT CT 143.0132 11.9177
PREMIUM BRANDS HOLDINGS CORP 74061A108 PBH CT 13.9986 1.1665
PRIMARIS RETAIL REAL ESTATE 74157U109 PMZ-U CT 18.7611 1.5634
PROGRESS ENERGY RESOURCES CO 74326Y107 PRQ CT 11.7144 0.9762
PROVIDENT ENERGY TRUST-UTS 74386K104 PVE-U CT 7.8659 0.6554
PURE INDUSTRIAL REAL ESTATE 74623T108 AAR-U CT NA NA
REALEX PROPERTIES CORP 756041505 RP CT NA NA
RETROCOM MID-MARKET REIT 761298108 RMM-U CT 5.0632 0.4219
RICHARDS PACKAGING INCOME FD 763102100 RPI-U CT 8.6225 0.7185
RIOCAN REAL ESTATE INVST TR 766910103 REI-U CT 21.7652 1.8137
ROGERS SUGAR INC FD-TR UTS 774910103 RSI-U CT 5.0834 0.4236
SECOND CUP INCOME FUND 813137106 SCU-U CT 8.1003 0.6750
SIR ROYALTY INCOME FUND 829636109 SRV-U CT 10.2735 0.8561
SUPERIOR PLUS CORP 86828P103 SPB CT 10.7686 0.8973
SUPREMEX INCOME FUND 868637109 SXP-U CT 2.2292 0.1857
TRANSALTA CORP 89346D107 TA CT 21.0792 1.7566
TRANSFORCE INC 89366H103 TFI CT 12.1651 1.0137
TRANSGLOBE APARTMENT REAL ES 89367A107 TGA-U CT 10.6101 0.8841
TRILOGY ENERGY CORP 89620H105 TET CT 11.8927 0.9910
TRIMAC INCOME FUND 89620N102 TMA-U CT 4.6298 0.3858
TRINIDAD DRILLING LTD 896356102 TDG CT 6.0136 0.5011
VALENER INC 91912H108 VNR CT 16.9963 1.4163
VERMILION ENERGY INC 923725105 VET CT 43.2164 3.6013
VICWEST INCOME FUND 92647T102 VIC-U CT 14.9108 1.2425
WAJAX INCOME FUND 930787106 WJX-U CT 36.2278 3.0189
WESTSHORE TERMINALS INC FD 960911105 WTE-U CT 23.7508 1.9792
WHITEROCK REAL ESTATE INVEST 965531700 WRK-U CT 18.8835 1.5736
YELLOW MEDIA INC 985521103 YLO CT 6.2893 0.5241
ZARGON ENERGY TRUST 989132105 ZAR-U CT 19.6211 1.6350

Convertible Debentures

Name (Ticker/Coupon Maturity) CUSIP Volume
Weighted
Average
Trading
Price Per
$1,000
Exchange
Ratio
ADVANTAGE OIL & GAS LTD AAVCN   5   30/01/2015 00765FAE1 1,039.85 88.2400
AECON GROUP INC ARECN   7   30/09/2014 00762VAC3 1,050.03 88.7489
AECON GROUP INC ARECN   6.25   31/10/2015 00762VAD1 1,025.80 86.4817
AG GROWTH INTERNATIONAL AFNUCN   7   31/12/2014 001181AA4 1,137.63 97.5195
ARCTIC GLACIER INCOME AGUCN   6.5   31/07/2011 039675AA1 839.36 72.0090
ARTIS REAL ESTATE AXCN   6   30/06/2020 04315LAE5 1,003.79 85.9781
ATLANTIC POWER CORP ATPCN   6.25   15/03/2017 04878QAM5 1,110.65 93.8852
BORALEX INC BLX   6.75   30/06/2017 09950MAC6 1,034.89 87.1174
BOREALIS RETAIL REIT PMZCN   6.3   30/09/2015 74157UAE9 1,142.04 96.2945
CHARTWELL SR HSNG REIT CSHU   6   01/12/2011 16140UAA8 NA NA
CHEMTRADE LOGISTICS INC CHEUCN   6   31/03/2017 16387PAB9 1,025.14 86.4964
CHURCHILL CORP/THE CUQCN   6   30/06/2015 17143DAA1 1,048.56 89.9077
CINEPLEX GALAXY INC FUND CGXCN   6   31/12/2012 172453AA0 1,210.20 103.1790
CLARKE INC CKICN   6   31/12/2013 181901AB5 984.56 84.3755
COMINAR REIT CUFCN   6.5   30/09/2016 199910AF7 1,083.76 91.4707
CONNACHER OIL AND GAS CLLCN   4.75   30/06/2012 20588YAA1 960.57 81.8835  
CROMBIE REAL ESTATE INVE CRRCN   6.25   30/06/2015 227107AB5 1,157.82 98.9107
DATA GROUP INCOME FUND DGICN   6   30/06/2017 23768UAB3 895.49 77.8292
DAYLIGHT ENERGY LTD DAYCN   6.25   31/12/2014 239590AC6 1,060.09 90.7662
DAYLIGHT ENERGY LTD DAYCN   8.5   31/10/2012 239590AA0 NA NA
DAYLIGHT ENERGY LTD DAYCN   10   31/12/2013 239590AB8 1,166.07 101.0535
DUNDEE REIT DUCN   6   31/12/2014 265270AD0 1,035.05 88.5831
FAIRBORNE ENERGY LTD FELCN   6.5   31/12/2011 303623AA0 1,022.31 87.7155
FIRST CAP REALTY INC FCRCN   6.25   31/12/2016 31943BAW0 1,079.51 91.0723
FIRST URANIUM CORP FIUCN   7   31/03/2013 33744RAC6 1,200.07 101.2520
FIRSTSERVICE CORPORATION FSVCN   6.5   31/12/2014 33761NAA7 NA NA
FIRSTSERVICE CORPORATION FSVCN   6.5   31/12/2014 33761NAB5 NA NA
FORT CHICAGO ENER PARTNR FCEUCN   5.75   31/07/2017 346921AD1 1,027.64 87.6188
H&R REAL ESTATE INVESTME HRCN   6   30/06/2017 403925AC4 1,081.65 92.4663
H&R REAL ESTATE INVESTME HRCN   6.75   31/12/2014 403925AB6 1,405.10 119.7111
H&R REAL ESTATE INVESTME HRCN   5.9   30/06/2020 403925AF7 1,037.32 88.3695
HARVEST OPERATIONS CORP HTECN   7.25   30/09/2013 41754WAE1 1,026.57 86.8387
HARVEST OPERATIONS CORP HTECN   7.5   31/05/2015 41754WAJ0 1,051.06 87.8791
INNVEST REAL ESTATE INV INNUCN   6   31/05/2013 45771TAD0 1,016.27 84.9218
INNVEST REAL ESTATE INV INNUCN   6   30/09/2017 45771TAG3 1,011.38 86.0079
JAZZ AIR INCOME FUND JAZUCN   9.5   31/12/2014 47214XAA8 1,097.83 95.1732
JUST ENERGY EXCHANGE JEXCN   6   30/09/2014 48214AAA6 1,012.80 85.4685
JUST ENERGY INCOME FUND JEUCN   6   30/06/2017 48213TAA6 1,003.23 86.6985
KEYERA FACILITIES INCOME KEYU   8.25   31/12/2013 493272AB4 1,873.87 159.3575
MORGUARD REAL ESTATE INV MORGRD   6.5   30/09/2014 617914AL0 1,080.98 91.2427
NAL OIL & GAS TRUST NAEUCN   6.25   31/12/2014 628949AB5 1,050.70 89.9839
NORTHLAND POWER INCOME T NPICN   6.25   31/12/2014 666910AB0 1,259.87 107.4152
PEMBINA PIPELINE INCOME PPLCN   7.35   31/12/2010 706327AD5 1,692.48 143.8924
PENN WEST ENERGY TRUST PWTUCN   6.5   31/12/2011 707885AF6 1,031.75 88.5018
PERPETUAL ENERGY INC PMTCN   7.25   31/01/2015 714270AC9 1,018.11 87.1430
PERPETUAL ENERGY INC PMTCN   6.5   30/06/2012 714270AA3 1,010.29 86.7139
PROGRESS ENERGY RESOURCE PRQCN   5.25   31/10/2014 74326YAC1 1,011.59 84.8626
PROVIDENT ENERGY TRUST PVEUCN   6.5   30/04/2011 74386KAE4 1,011.92 85.0241
PROVIDENT ENERGY TRUST PVEUCN   6.5   31/08/2012 74386KAD6 1,017.11 86.3619
SUPERIOR PLUS CORP SPBCN   5.75   31/12/2012 86828PAA1 1,005.67 86.0374
SUPERIOR PLUS CORP SPBCN   5.75   30/06/2017 86828PAD5 949.77 81.3794
SUPERIOR PLUS CORP SPBCN   5.85   31/10/2015 86828PAB9 996.87 83.6999
SUPERIOR PLUS CORP SPBCN   5.75   30/06/2017 86828PAD5 949.77 81.3794
TRINIDAD DRILLING LTD TDGCN   7.75   31/07/2012 896356AA0 1,004.61 86.7250
VALEANT PHARMACEUTICALS VRXCN   5.375   01/08/2014 09067JAC3 NA NA
YELLOW MEDIA INC YLOCN   6.25   01/10/2017 985521AA1 983.12 83.0249
ZARLINK SEMICONDUCTOR ZLCN   6   30/09/2012 989139AA8 1,050.03 89.8316

The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes National Bank Financial Inc., Scotia Capital Inc., Macquarie Private Wealth Inc., Canaccord Genuity Corp., Raymond James Ltd., Wellington West Capital Markets Inc., Dundee Securities Corporation, GMP Securities L.P., HSBC Securities (Canada) Inc., MGI Securities Inc., Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated (collectively, the "Agents").

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund. The forward-looking statements are not historical facts but reflect the Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

This offering is only made by a prospectus dated November 26, 2010. The prospectus contains important information relating to these securities. Copies of the prospectus may be obtained from any of the Agents. Investors should read the prospectus before making an investment decision.

All capital terms noted herein but not defined are as per the prospectus dated November 26, 2010.

For further information: For further information:

for media inquiries or additional information: please contact O'Leary Funds at info@olearyfunds.com or at 1-877-849-2004 x226

Organization Profile

O'Leary Canadian Income Opportunities Fund 2

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