TORONTO, Nov. 9 /CNW/ - O'Leary Funds Management LP (the "Manager") is pleased to announce that a preliminary prospectus for the O'Leary Canadian Equity Income Fund (the "Fund") has been filed with, and a receipt therefor issued by, the securities regulatory authorities in each of the provinces of Canada.
The Fund's investment objectives are: (i) to maximize total return for holders ("Unitholders") of trust units, consisting of distributions, interest and dividend income and capital appreciation; and (ii) to provide Unitholders with monthly distributions initially targeted to be $0.08 per trust unit ($0.96 per annum representing an annual cash distribution of 8% based on the $12.00 per unit issue price).
The Fund has been created to invest in an actively managed portfolio comprised primarily of publicly-traded securities of issuers domiciled in Canada providing investors with both income and potential for capital appreciation. The Fund will initially invest primarily in income trust units and, to a lesser extent, dividend-paying equity securities, corporate bonds, convertible debt securities and preferred shares of such issuers.
The Manager has appointed Stanton Asset Management Inc. ("Stanton") to provide investment advisory services to the Fund. Stanton will work with Savtrev, Inc. ("O'Leary") to identify securities providing income and the potential for capital appreciation.
The Fund is an investment trust governed by the laws of the Province of Ontario which proposes to issue units (the "Units") of the Fund (the "Offering") at a price of $12.00 per Unit. Each Unit consists of one transferable trust unit ("Trust Unit") and one Trust Unit purchase warrant ("Warrant"). The Units will separate into Trust Units and Warrants upon the earlier of the closing of the Over-Allotment Option and the 30th day following the closing of the Offering.
Each Warrant entitles the holder to purchase one Trust Unit at a subscription price of $12.00 on or before 5:00 p.m. (Toronto time) on November 30, 2010 (the "Warrant Expiry Time"). Warrants not exercised by the Warrant Expiry Time will be void and of no value.
The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, Scotia Capital Inc., National Bank Financial Inc., Blackmont Capital Inc., Canaccord Capital Corporation, GMP Securities L.P., HSBC Securities (Canada) Inc., Wellington West Capital Markets Inc., Dundee Securities Corporation, MGI Securities Inc., Raymond James Ltd., Desjardins Securities Corporation, Manulife Securities Incorporated and Research Capital Corporation (collectively, the "Agents").
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund. The forward-looking statements are not historical facts but reflect O'Leary Funds Management LP's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although O'Leary Funds Management LP believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. O'Leary Funds Management LP undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
A preliminary prospectus dated November 4, 2009 containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from any of the Agents. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the preliminary prospectus has been issued.
All capital terms noted herein but not defined are as per the preliminary prospectus dated November 4, 2009.
SOURCE O'LEARY CANADIAN EQUITY INCOME FUND
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