TORONTO, April 4, 2012 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. is pleased to announce that the Connor, Clark & Lunn 2010 Flow-Through Limited Partnership (the "Partnership") will be proceeding with a transaction (the "Liquidity Alternative") pursuant to which the net assets of the Partnership (the "Assets") will be transferred on a tax-deferred basis to the Connor, Clark & Lunn Natural Resources Class (the "Resources Class") of Connor, Clark & Lunn Capital Class Inc. (the "Corporation" or "Mutual Fund"), an open-ended mutual fund corporation, in exchange for shares of the Resources Class. The Resources Class seeks to generate long term growth by providing investors with exposure to Canadian natural resources companies.
Resources Class shares may be redeemed for cash or retained for longer-term growth and delay incurring the capital gains tax liability that results upon redemption of the shares. Investors can also transfer their investment into the Connor, Clark & Lunn Balanced Portfolio Class (the "Balanced Portfolio Class") on a non-taxable basis. The Balanced Portfolio Class is broadly diversified across different types of equity and fixed income securities and seeks to generate modest growth of capital while utilizing fixed income investments to stabilize returns.
Pursuant to the Liquidity Alternative, limited partners of the Partnership (the "Partners") will receive shares of the Resources Class in connection with the dissolution of the Partnership. The effective date of the Liquidity Alternative (the "Effective Date") is expected to be on or about April 12, 2012. Shortly after the Effective Date, the shares of the Resources Class that the Partnership will receive as consideration for the transfer of its Assets will be distributed to the Partners on a pro rata basis and thereafter the Partnership will be dissolved. Completion of the Liquidity Alternative will be subject to the receipt of all necessary regulatory approvals and other usual closing conditions.
Partners will receive shares of the Resources Class in exchange for, and with a value equal to, the value of the units of the Partnership held at the time of such transfer of Assets. Partners will receive a number of shares of the Resources Class equal to the number of Partnership units held multiplied by the Conversion Ratio. The Conversion Ratio will be equivalent to the Net Asset Value of units of the Partnership divided by the Net Asset Value of the shares of the Resources Class determined at the close of business on or about April 12, 2012. Shares of the Resources Class will be received and Partnership units will be removed from each Partners account. Processing may take 2 to 3 business days (in some cases longer) to complete on the dealer side after the rollover occurs.
The wind up of the Partnership will occur after the completion of the Liquidity Alternative. The General Partners will communicate the finalized details at that time. Partners should consult their Investment Advisor and/or tax advisor for all tax-related matters.
For further information:
please visit www.cclcapitalmarkets.com or contact:
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
416-214-6182 or 1-888-276-2258