CALGARY, August 29, 2018 /CNW/ - Middlefield Group is pleased to announce the successful completion, effective today, of the previously announced merger of Globalance Dividend Growers Corp. ("Globalance") (TSX:GBF) and MBN Corporation ("MBN") (TSX:MBN) (collectively, the "Funds"), with MBN being the continuing fund.
The merger was effected on a tax-deferred "rollover" basis. All costs and expenses associated with the merger are being borne by the Manager and not the Funds.
Pursuant to the merger, each Globalance equity share was automatically exchanged for 1.11019292 equity shares of MBN. This exchange ratio was based on the relative net asset values of Globalance and MBN as at the close of trading on the Toronto Stock Exchange (the "TSX") on August 28, 2018, which were approximately $9.11 per equity share and $8.21 per equity share, respectively. Approximately 1,335,147 new equity shares of MBN were issued in connection with the merger. At the close of business yesterday, the shares of Globalance were delisted and no longer trade on the TSX.
Shareholders of Globalance are not required to take any action in order to be recognized as shareholders of MBN and to be in a position to trade their MBN shares on the TSX.
As previously announced, Mr. Garth Jestley joined MBN as Special Advisor to assist in creating long-term value by growing MBN through mergers with other investment funds and by pursuing strategic opportunities. In addition, MBN has initiated a quarterly distribution of $0.08 per share for shareholders of record as of September 30, 2018 that will be paid on or about October 15, 2018.
Equity Shares of MBN trade under the symbol MBN on the TSX.
For further information on MBN, including its annual report and annual information form, which outline MBN's investment strategy and other features and attributes, please visit our website at www.middlefield.com or contact Craig Rogers in our Corporate Development Department at 1.888.890.1868.
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation and the performance of each fund. There are no assurances the funds can fulfill such forward-looking statements and the funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the funds, some of which are beyond the control of the funds.
SOURCE MBN Corporation
For further information: Craig Rogers in our Corporate Development Department at 1.888.890.1868