TORONTO, June 13, 2016 /CNW/ - NewGrowth Corp. (the "Company") announced today that it has called 333,948 Class B Preferred Shares, Series 3 (the "Preferred Shares") for cash redemption on June 24, 2016 (in accordance with the Company's Articles of Incorporation, as amended) representing approximately 15.716% of the outstanding Preferred Shares as a result of the special annual retraction of 333,948 Capital Shares by the holders thereof. The Preferred Shares shall be redeemed on a pro rata basis, so that each holder of Preferred Shares of record on June 22, 2016 will have approximately 15.716% of their Preferred Shares redeemed. The redemption price for the Preferred Shares will be $32.07 per share.
In addition, holders of a further 355,699 Capital Shares and 355,699 Preferred Shares have deposited such shares concurrently for retraction on June 24, 2016. As a result, a total of 689,647 Capital Shares and 689,647 Preferred Shares, or approximately 27.801% of both classes of shares currently outstanding, will be redeemed.
Holders of Preferred Shares that are on record for dividends but have been called for redemption will be entitled to receive dividends thereon which have been declared but remain unpaid up to but not including June 24, 2016.
Payment of the amount due to holders of Preferred Shares will be made by the Company on June 24, 2016. On and after June 24, 2016 the holders of Preferred Shares that have been called for redemption will not be entitled to dividends or to exercise any right in respect of such shares except to receive the amount due on redemption.
NewGrowth Corp. is a mutual fund corporation whose investment portfolio consists of publicly-listed securities of selected Canadian chartered banks, telecommunication, oil and gas, pipeline and utility issuers. The Capital Shares and Preferred Shares of NewGrowth Corp. are listed for trading on The Toronto Stock Exchange under the symbols NEW.A and NEW.PR.D respectively.
SOURCE NewGrowth Corp.
For further information: Investor Relations, NewGrowth Corp., (416) 862-3931, E-mail: [email protected], Web site: www.scotiamanagedcompanies.com