Propel Multi-Strategy Fund Closes Initial Public Offering

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

The Combined Units and the Units and Warrants comprising the Combined Units are not and will not be offered or sold in the United States, or to or for the account of U.S. persons as defined by U.S. securities laws. Each purchaser of a Unit or Combined Unit will be deemed to represent that such purchaser is not a U.S. person, is not receiving the Unit or Combined Unit in the United States, and is not acquiring the Unit or Combined Unit for the account of a U.S. person.

TORONTO, Dec. 9 /CNW/ - Propel Capital Corporation  is pleased to announce that the Propel Multi-Strategy Fund (the "Fund") has closed today its initial public offering (the "Offering") of 7,000,000 Units at a price of $10.00 per Unit for aggregate gross proceeds of $70,000,000 million. The Units are listed on the Toronto Stock Exchange ("TSX") under the symbol PPF.A.  

The Fund's investment objective is to maximize the long-term capital appreciation for Unitholders by providing exposure to the Lyxor/Paulson Advantage Fund Limited, the Lyxor/Paulson International Fund Limited and SPDR^® Gold Trust through a forward agreement. The offering consists of Combined Units of the Fund. Each Combined Unit consists of one transferable, redeemable unit of the Fund (a "Unit") and one transferable warrant of the Fund (a "Warrant"). Each Warrant entitles the holder to purchase one Unit at a subscription price of $10.00 on and only on November 30, 2011.

The Fund has granted the Agents an over-allotment option exercisable in whole or in part for a period of 30 days following the closing of the offering to acquire up to 15% of the aggregate number of Combined Units issued at the closing.

The Fund will provide investors with exposure to a notional portfolio initially weighted as to 40% to the Lyxor/Paulson Advantage Fund Limited, as to 40% to the Lyxor/Paulson International Fund Limited and as to 20% to the SPDR^® Gold Trust. ⁽¹⁾ Paulson & Co. Inc. ("Paulson & Co.") is the Trading Advisor for the Lyxor/Paulson Advantage Fund Limited and Lyxor/Paulson International Fund Limited.

Founded in 1994 by John Paulson, Paulson & Co. is a New York-based alternative investment management company that currently manages over US$33 billion of assets in five strategies.  Paulson & Co. employs approximately 100 individuals, 52 of whom are investment professionals. 

The syndicate of agents is co-led by CIBC, BMO Capital Markets and RBC Capital Markets and includes GMP Securities L.P., Scotia Capital Inc., Wellington West Capital Markets Inc., HSBC Securities (Canada) Inc., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Desjardins Securities Inc., Dundee Securities Corporation, Manulife Securities Incorporated and Raymond James Ltd. (collectively, the "Agents").

This offering is only made by prospectus. The final prospectus dated November 22, 2010 contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from one of the Agents. Investors should read the prospectus before making an investment decision. This investment may not be suitable for all investors. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. An investment in the Fund is not guaranteed, its value changes frequently and past performance may not be repeated.

⁽¹⁾ "SPDR" is a trademark of The McGraw-Hill Companies, Inc.

Certain statements included herein 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 Propel'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 Propel 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. Propel 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 factors which affect this information, except as required by law.

For further information:

For media inquiries or additional information: please contact Raj Lala at Propel Capital at [email protected] or at 416-572-2364.