TORONTO, May 1 /CNW/ - O'Leary Funds Management is pleased to announce
that a final prospectus for the initial public offering of the O'Leary
Canadian Income Opportunities Fund (the "Fund") has been filed with, and a
receipt therefore issued by, the securities regulatory authorities in each of
the provinces of Canada. The offering is expected to close on May 27, 2009 at
12:00 p.m. EST.
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 Fund has been created to invest in an actively managed portfolio
comprised primarily of publicly-traded securities of mid and large-cap issuers
domiciled in Canada providing investors with both income and potential for
capital appreciation. The Fund will invest primarily in corporate bonds,
convertible debt securities, preferred shares, as well as income trust units
and dividend-paying equity securities of such issuers. Stanton Asset
Management Inc. ("Stanton" or the "Portfolio Advisor") believes that market
conditions have become attractive for investing in income-generating
securities of mid and large-cap issuers domiciled in Canada, including
securities that are senior to common equities and securities of income trusts.
The Fund will permit investors to capitalize on the knowledge and
capabilities of Stanton and Savtrev, Inc. ("O'Leary") who will work together
to identify securities providing income and the potential for capital
appreciation. The Portfolio Advisor and O'Leary believe that a portfolio of
primarily Canadian corporate bonds, convertible debt securities, preferred
shares, income trust units and dividend-paying equities, will provide
investors with the opportunity to earn attractive total returns and income,
while diversifying risk.
The Fund's investment objectives are:
(i) to maximize total return for holders of Trust Units ("Unitholders"),
consisting of distributions, interest and dividend income and
capital appreciation; and
(ii) to provide Unitholders with monthly distributions initially targeted
to be $0.09 per Trust Unit ($1.08 per annum representing an annual
cash distribution of 9.0% based on the $12.00 per Unit issue price).
The syndicate of agents is co-led by CIBC World Markets Inc. and RBC
Capital Markets and includes BMO Capital Markets, National Bank Financial
Inc., Scotia Capital Inc., Blackmont Capital Inc., HSBC Securities (Canada)
Inc., Raymond James Ltd., Canaccord Capital Corporation, Dundee Securities
Corporation and Wellington West Capital Markets Inc.
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.
This offering is only made by a prospectus dated April 29, 2009. The
prospectus contains important information relating to these securities. Copies
of the prospectus may be obtained from any of the Agents. Investors should
read the prospectus before making an investment decision.
All capitalized terms noted herein but not defined are as per the
prospectus dated April 29, 2009.
For further information:
For further information: For media inquiries or additional information:
please contact O'Leary Funds at email@example.com or at 1-877-849-2004