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TORONTO, Nov. 24, 2017 /CNW/ - (TSX - PRM, PRM.PR.A): Harvest Portfolios Group Inc. ("Harvest") is pleased to announce that Big Pharma Split Corp. (the "Company") has completed its initial public offering (the "Offering") of 1,360,000 Preferred Shares and 1,360,000 Class A Shares for aggregate gross proceeds of $34 million. The Company has granted the Agents (as defined below) an over-allotment option, exercisable for a period of 30 days from today's date, to purchase up to an additional 204,000 Preferred Shares and up to an additional 204,000 Class A Shares. The Class A Shares and the Preferred Shares will commence trading today on the Toronto Stock Exchange under the symbols "PRM" and "PRM.PR.A", respectively.
The Company will invest in an initially equally-weighted portfolio (the "Portfolio") of ten issuers comprised of equity securities selected by Harvest from a universe of pharmaceutical issuers that at the time of investment and immediately following each semi-annual reconstitution and rebalancing: (i) are listed on a North American exchange; (ii) pay a dividend; and (iii) have options in respect of its equity securities that, in the opinion of Harvest, are sufficiently liquid to permit Harvest to write options in respect of such securities (the "Investable Universe"). The Portfolio will be comprised primarily of the largest (as determined by market capitalization calculated in US$) pharmaceutical issuers in the Investable Universe. In order to seek to generate additional returns, Harvest may write call options each month in respect to some or all of the equity securities in the Portfolio.
The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.125 per Preferred Share ($0.50 per annum or 5.0% per annum on the $10.00 issue price) until December 31, 2022 (the "Maturity Date") and to return of the original issue price to holders on the Maturity Date.
The investment objectives for the Class A Shares are to provide their holders with regular monthly cash distributions targeted to be $0.1031 per Class A Share ($1.2372 per annum or 8.25% per annum on the $15.00 issue price) and with the opportunity for growth in net asset value per Class A Share.
Harvest is the manager, portfolio manager and promoter of the Company.
The syndicate of agents for the Offering is being co-led by BMO Capital Markets, CIBC Capital Markets and Scotiabank and also includes National Bank Financial Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Mackie Research Capital Corporation and PI Financial Corp. (collectively, the "Agents").
The Offering is made only by prospectus. The prospectus contains important detailed information relating to the Preferred Shares and Class A Shares being offered. Copies of the prospectus may be obtained from any of the Agents. Investors should read the prospectus before making an investment decision.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
SOURCE Harvest Portfolios Group Inc.
For further information: Please visit www.harvestportfolios.com, e-mail [email protected] or call toll free 1-866-998-8298.