Canadian Life Companies Split Corp.: Class A Share Rebalancing
June 19 2012 - 2:19PM
Marketwired
Canadian Life Companies Split Corp. (the "Company") announces a
Class A share consolidation for all Class A shareholders of record
on June 25, 2012 (the "Consolidation") that will decrease the
number of Class A shares held by each Class A shareholder. The
purpose of the share Consolidation is to maintain an equal number
of Class A shares and Preferred shares outstanding. The intrinsic
value of each investor's holdings in Class A shares will remain the
same after the Consolidation. The decrease in the number of Class A
shares would be proportionate to the increase in the net assets
attributable to the Class A shares.
As a result of the successful vote to reorganize the Preferred
shares of the Company at the recent Special Meeting of Shareholders
held on April 16, 2012, both Class A shareholders and Preferred
shareholders were given a special retraction right. This special
retraction right allowed both classes of shareholders to tender one
or both classes of shares. In aggregate, there were more Preferred
shares tendered for retraction than Class A shares. Since the
Company is required to maintain an equal number of shares
outstanding for each class as per the prospectus, the Company must
decrease the Class A shares to match the number of Preferred
shares.
Immediately after payments for the May and June monthly
retraction and the special retraction right on June 19, 2012, there
will be 7,776,613 Preferred shares and 10,693,243 Class A shares
outstanding. In order to restore an equal amount of shares
outstanding for each class, Class A shareholders of record as at
June 25, 2012 will receive approximately 0.7272455138 Class A
shares for each Class A share outstanding. The decrease in shares
(Consolidation) is a non taxable event.
The impact of the Class A share Consolidation will be reflected
in the next reported net asset value per unit as at the June 22,
2012 Consolidation date. Net assets of the Company after the
retraction payments will be approximately $91.7 million.
Contacts: Canadian Life Companies Split Corp. Investor Relations
416-304-4443, toll free at 1-877-4-Quadra (1-877-478-2372)
www.lifesplit.com
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