TORONTO, Dec. 9 /CNW/ - NexGen Financial Limited Partnership ("NexGen or the "Partnership")") is pleased to announce that it has closed its private placement of 1,506,200 priority common units (the "Units") at a price of $10 per Unit for gross proceeds of $15,062,000. The Priority Units have priority over NexGen's subordinate units for the 2009 and 2010 calendar years to: (i) receive tax losses generated by the Partnership; and (ii) receive property of the Partnership on liquidation, wind up or dissolution. The offering was lead by National Bank Financial Inc and Cormark Securities Inc. and included Blackmont Capital Inc., Burgeonvest Bick Securities Limited, Industrial Alliance Securities Inc., Raymond James Ltd., and Wellington West Capital Inc.
"The capital raised in this offering provides the financial resources for NexGen to efficiently finance its rapid growth", said Jim Hunter, CEO of NexGen. "Just as important, we welcome 231 new NexGen investors."
Proceeds from the issue will be used to expand its sales force, pay selling commissions, and fund the introduction of low load commissions and for general working capital. Approximately $3.25 million of the proceeds will be used to redeem Series A debentures of the Partnership.
"We have demonstrated that our Tax Managed Funds are adding value to Canadian portfolios", said Laurie Munro, President of NexGen. "With this capital we can expand the distribution and sales support available to the over 30,000 Advisors associated with the 75 firms with which NexGen now has distribution agreements".
NexGen today reported preliminary total mutual fund net sales in October of $29 million and November of $23 million. Total assets under management were $485 million at November 30, 2009, up 13% from $429 million at September 30, 2009.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
NexGen Financial Limited Partnership is one of Canada's fastest growing independent financial services firm and was founded to develop value added investment solutions for financial advisors and their clients. The firm is focused on the creation of innovative investment products and services that meet the needs of Canadians seeking more tax efficient investment opportunities and greater control over the tax treatment of their investments. Managed by strong investment professionals, NexGen's unique Registered and Tax-Managed Fund offerings are well positioned as attractive investment opportunities for Canadians looking to alleviate the tax costs associated with traditional investment solutions.
Cautionary Statement on Forward Looking Information
This press release may include forward looking statements within the meaning of securities laws. Forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from what is currently expected. Accordingly, readers should not place undue reliance on forward looking statements.
SOURCE NexGen Financial Limited Partnership
For further information: For further information: James L Hunter, CEO, (416) 775-3701, firstname.lastname@example.org; Laurie Munro, President, (416) 775-3705, email@example.com