FRONT STREET MUTUAL FUNDS LIMITED AND FRONT STREET RESOURCE PERFORMANCE FUND
LTD. PROPOSED MERGER AND SHAREHOLDER MEETINGS
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES/
TORONTO, Dec. 23 /CNW/ - Each of Front Street Mutual Funds Limited ("FSMFL"), Front Street Resource Performance Fund Ltd. ("FS Resource Performance" and, together with FSMFL, the "Fund Corporations") and Front Street Capital 2004, the manager of both Fund Corporations, have announced that special meetings of the holders of the Series A, Series B, Series F and Series X Shares of Front Street Resource Fund, Front Street Canadian Equity Fund, Front Street Money Market Fund, Front Street Small Cap Fund and Front Street Diversified Income Fund, and Series A, Series B, Series F, Series X and Series Y Shares of Front Street Special Opportunities Canadian Fund, each a class of shares of FSMFL, and holders of Equity Shares of FS Resource Performance (each a "Fund" and collectively the "Funds") will be held on February 10, 2011. FSMFL offers a multiple share class structure (with each share class representing a separate mutual fund) providing investors with the ability to switch their investments between the different mutual funds within FSMFL on a tax-deferred basis.
At the special meetings, shareholders of the Funds will be asked to consider a proposed merger of FSMFL with FS Resource Performance (the "Merger"). The Merger would be accomplished by the amalgamation of the Fund Corporations under the Canada Business Corporations Act (Canada). In this Merger, FSMFL would be considered to be the surviving fund for securities regulatory purposes.
As part of the amalgamation, one new series of shares of Front Street Resource Fund will be created: Series L shares. On the amalgamation of FSMFL with FS Resource Performance, existing holders of the Equity Shares of FS Resource Performance would receive Series L shares of the Front Street Resource Fund class of shares of FSMFL. Such shares would have substantially the same rights as the Equity Shares currently held by shareholders of FS Resource Performance, but would ultimately provide shareholders with additional investment options that they can switch into on a tax-deferred basis should they wish. The amalgamation of the Fund Corporations will have no effect on the existing shareholders of FSMFL.
The Merger is subject to receipt of all required regulatory approvals, and to the approval of the shareholders of the Funds at special meetings. Assuming all such approvals are obtained, the merger of FSMFL with FS Resource Performance is expected to be completed on or about March 1, 2011.
Shareholders of record of the Funds on January 5, 2011 will be entitled to receive notice of, and to vote, at this special meeting. An information circular containing details of the Merger will be mailed to such shareholders on or about January 14, 2011. This information circular will also be available at www.sedar.com.
For further information: For further information:
Front Street Capital 2004
Investor Relations
1-800-513-2832
or www.frontstreetcapital.com
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