Matco Energy Equity Fund to Complete Reorganization Transaction with Matco Small Cap Fund


CALGARY, April 7, 2016 /CNW/ - Matco Funds Corp. is pleased to announce its intention to complete a reorganization transaction (the "Transaction") whereby the securityholders of the Matco Energy Equity Fund (the "Energy Fund") will become securityholders of the Matco Small Cap Fund (the "Small Cap Fund").  The Transaction is expected to take place on or about April 29, 2016 (the "Effective Date") in accordance with the following steps. On or prior to the Effective Date, the Energy Fund will sell its portfolio of equities. On the Effective Date, the proceeds realized from the sale of the portfolio of the Energy Fund will be transferred to the Small Cap Fund. On the Effective Date, based on the net asset value of the Energy Fund following the sale of its portfolio, securityholders of the Energy Fund will have their shares in the Energy Fund exchanged for shares in the Small Cap Fund at the then-current net asset value of the Small Cap Fund. The Energy Fund will then be wound up and discontinued as soon as reasonably possible following completion of the Transaction.

Completion of the Transaction is subject to receipt of all necessary regulatory and other applicable approvals, including approval of all of the shareholders holding shares in the Energy Fund. A special meeting of such shareholders will be held on April 29, 2016, commencing at 10:00 a.m. (Calgary Time) at the offices of Bennett Jones LLP, 4500 Bankers Hall East, 855 – 2nd Street, S.W., Calgary, Alberta, T2P 4K7. Details of the proposed Transaction will be contained in an Information Circular and related meeting materials which will be mailed to the shareholders of the Energy Fund. The record date for the meeting is March 29, 2016. Shareholders of the Energy Fund are encouraged to complete and return their proxy forms in order that their shares can be voted at the meeting. The board of directors of Matco Funds Corp. and its manager, Matco Financial Inc. have each determined that the Transaction is in the best interests of Energy Fund and therefore, recommend that shareholders holding shares in the Energy Fund vote in favor of the Transaction at the meeting.

The Matco Small Cap Fund

The Small Cap Fund seeks to provide long-term capital appreciation by investing primarily in small to mid-capitalization Canadian companies. Specifically, the fund invests in select enterprises that have strong balance sheets, are attractively priced, pay stable dividends and reinvest excess earnings back into the company. The fund offers investors a strong complement to large-cap holdings and a timely means of gaining moderate leverage during the economic recovery as small-cap stocks generally outperform large caps during such periods. Although the Small Cap Fund is primarily focused on Canadian equities, it may also invest from time to time in certain amounts of U.S. and foreign securities based upon Matco Financial Inc.'s assessment of market conditions.

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 such as "expects", "is expected" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to: the proposed timing of the Transaction and the expected completion thereof; the expected benefits of the Transaction; and the Energy Fund and Small Cap Fund which are proposed to be merged. 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 the Energy Fund and Small Cap 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 more of the funds, some which are beyond the control of the funds.

SOURCE Matco Financial Inc

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