First Asset's CanBanc Income Corp. to Convert to an ETF
Jul 10, 2015, 10:41 ET
/NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA./
TORONTO, July 10, 2015 /CNW/ - First Asset Investment Management Inc. announces that the shareholders of CanBanc Income Corp. (the "Fund") (TSX: CIC.UN) approved the elimination of the Fund's fixed termination date and the conversion of the Fund into an exchange-traded fund ("ETF").
The implementation of the conversion of the Fund into an ETF (the "ETF Conversion") is subject to certain third party and regulatory approvals. First Asset currently anticipates that the ETF Conversion will be implemented in September 2015. First Asset will issue a press release announcing the effective date of the ETF Conversion as soon as practicable after all of the approvals have been obtained. Shareholders will not be required to take any action in connection with the ETF Conversion.
"The ETF Conversion will provide shareholders with all of the benefits that ETFs offer, while also preserving valuable tax attributes of the Fund and allowing existing shareholders the ability to continue to defer any existing capital gains," noted Barry Gordon, President and CEO, First Asset Investment Management Inc. "The Fund delivered on its investment objectives and as an ETF will continue to provide an excellent choice for investors to obtain exposure to Canada's largest banks, while earning higher distributions from option premiums earned through the systematic 25% covered call overlay."
In connection with the ETF Conversion, the Fund will implement a special redemption right for those shareholders who do not wish to remain as investors in the Fund. Shareholders who wish to exercise the redemption right must provide notice no later than 5 p.m. (Toronto time) on August 17, 2015. Shareholders are advised to inform their advisor or other intermediary sufficiently in advance of August 17, 2015 of their desire to redeem their shares as their advisor or other intermediary may have an earlier cut-off deadline. Shareholders who redeem their shares will receive the net asset value per share of the Fund on August 31, 2015. The proceeds of the special redemption will be paid on or before September 22, 2015.
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SOURCE First Asset
For further information: please call Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.
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