TORONTO, Nov. 19, 2012 /CNW/ - Jovian Capital Corporation ("Jovian") (TSX: JOV) is pleased to announce that its Board of Directors has declared a special dividend of $3.00 per common share. This dividend is derived from proceeds realized from the sale by Jovian of MGI Financial Inc. on October 5, 2011, and the Horizons ETFs business on November 14, 2011, and coincides with the release of certain funds from escrow and a reduction in Jovian's potential indemnification liabilities with respect to the Horizons ETFs transaction. After payment of this dividend, Jovian will remain well-capitalized with approximately $35 million of working capital.
The record date for the special dividend has been set at November 28, 2012 (the "Record Date"), and the payment of the special distribution is expected to occur on December 13, 2012. This dividend has been determined to be an eligible dividend for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
As this distribution of $3.00 per share presently exceeds 25% of Jovian's current stock price, pursuant to the rules of the Toronto Stock Exchange ("TSX"), the "ex-distribution" date (the date on which purchases of the security will no longer have an attaching right to the distribution) will be December 14, 2012, the first trading day following the distribution payment date. In addition, the TSX will apply its "Due Bill" trading procedures, pursuant to which trades of Jovian's common shares entered into before the December 14 ex-distribution date but settled after the November 28 Record Date (the "Due Bill Period") will have a Due Bill attached for the special cash distribution. This means that holders who purchase these securities during the Due Bill Period (even if the trades are to be settled after that Due Bill Period) are entitled to receive the special dividend, and sellers who sell the securities during the Due Bill Period are not entitled to the special dividend. Investors who enter into trades to purchase common shares on or after December 14, 2012, will not be entitled to the special dividend.
About Jovian Capital Corporation
Jovian acquires, creates and grows financial services companies specializing in two primary market segments: wealth management and asset management. The Jovian group of companies (MGI Securities Inc., MGI Securities (USA) Inc., T.E. Wealth, Leon Frazer & Associates Inc., Hahn Investment Stewards & Company Inc., JovFinancial Solutions Inc. and Fit Private Investment Counsel Inc.) oversees approximately $6.4 billion of client assets ($5.0 billion in client assets managed or advised and $1.4 billion in assets under administration). Additional information is available at www.joviancapital.com and www.sedar.com.
SOURCE: Jovian Capital Corporation
For further information:
For further information:
Don Sangster, Investor Relations, Jovian Capital Corporation, (416) 933-5744; or
Philip Armstrong, C.E.O., Jovian Capital Corporation, (416) 933-5752.