TORONTO, Sept. 9, 2013 /CNW/ - Middlefield Group, on behalf of Global Dividend Growers Income Fund (the "Fund"), is pleased to announce that it has completed an additional offering of 2,304,143 units of the Fund at a price of $10.04 per unit for gross proceeds of $23.1 million. Pricing was established so as to be at least equal to the net asset value per unit plus agents fees and expected expenses of the offering on the date of pricing to ensure that existing unitholders are not diluted.
Global Dividend Growers Income Fund is designed to provide investors with a low-cost investment in global issuers that have exhibited a history of strong dividend growth. The net proceeds of the offering will be invested by the Fund in accordance with its investment objectives which are to:
(i) provide holders of units with stable monthly cash distributions and to grow distributions over time, and
(ii) enhance long-term total return through capital appreciation of the Fund's investment portfolio,
through an investment strategy which combines passive and active portfolio management and entails investing primarily in securities of global, including Canadian and U.S., issuers which have exhibited strong dividend growth.
The Fund's target distribution amount for the period ending March 31, 2014 is $0.05 per unit per month (corresponding to an annualized distribution of $0.60 per unit per annum).
Middlefield Capital Corporation acts as the investment advisor to the Fund.
Units trade under the TSX symbol "GDG.UN".
The syndicate of agents was co-led by CIBC and RBC Capital Markets and included Scotiabank, BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Raymond James Ltd., GMP Securities L.P., Mackie Research Capital Corporation, Middlefield Capital Corporation and Dundee Securities Ltd.
Certain statements in this press release may constitute forward-looking information, including statements regarding cash-on-cash yield. Forward-looking statements are subject to various risks and uncertainties that could cause estimates to differ materially from the expectations expressed, including the risk that the per unit distributions may decrease below the amount used in calculating the yield, which could occur for various reasons beyond the control of the Fund such as a decrease in the distributions paid by the issuers of securities included in the Fund's portfolio or a change in general economic conditions. The forward-looking information contained in this press release constitutes the Fund's current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund's estimate as of any date other than the date of this press release. Unless required by applicable securities law, the Fund does not intend and does not assume any obligation to update these forward-looking statements.
SOURCE: Global Dividend Growers Income Fund
For further information:
For further information, please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868.