M Split Corp. Extends Termination Date
February 21 2019 - 4:00PM
M Split Corp. (the “Company”) is pleased to announce it will extend
the termination date of the Company a further five year period from
December 1, 2019 to December 1, 2024.
The term extension allows holders of XMF.A
Capital Shares (“Capital Shares”) to potentially receive leveraged
exposure to a portfolio consisting of common stock of Manulife
Financial if the net asset value (“NAV”) exceeds $10.00, as well as
receiving targeted monthly distributions if and when the NAV is
greater than $15.00. Holders of the XMF.PR.B Class I
Preferred Shares (“Class I Preferred Shares”) are expected to
continue to benefit from cumulative preferential monthly
distributions. Holders of the XMF.PR.C Class II Preferred
Shares (“Class II Preferred Shares”) are expected to receive
cumulative preferential monthly distributions when the NAV is
greater than $10.00.
The extension of the term of the Company is not
expected to be a taxable event and should enable shareholders to
defer potential tax liability that would have otherwise been
realized on the redemption of the Capital Shares, Class I Preferred
Shares and Class II Preferred Shares at the end of the term, until
such time as such shares are disposed of by shareholders.
In connection with the extension, the Company
will have the right to amend the rate of cumulative preferential
monthly dividends to be paid to the Class I Preferred Shares and
Class II Preferred Shares for the five year renewal period,
commencing December 1, 2019. Any change to the Preferred
Share dividend rates for the extended term will be based on market
yields for preferred shares with similar terms at such time and
will be announced no later than September 30, 2019.
The Company invests in common shares of Manulife
Financial Corporation, the largest life insurer in Canada offering
financial products and wealth management services.
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 Company.
The forward-looking statements are not historical facts but reflect
the Company’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 the
Company 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. The
Company 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.
Commissions, trailing commissions, management fees and expenses all
may be associated with mutual fund investments. Investors should
read the prospectus before investing. Mutual funds are not
guaranteed, their values change frequently and past performance may
not be repeated. Please read the Company’s publically filed
documents which are available at www.sedar.com.
Investor Relations: 1-877-478-2372Local:
416-304-4443www.m-split.cominfo@quadravest.com
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