Class A Share Rebalancing
TORONTO, Dec. 17, 2018 (GLOBE NEWSWIRE) — Canadian Life Companies Split Corp. (“the Company”) announces a Class A share subdivision.
In connection with the extension of the termination date of the Company, a special retraction right was offered allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 30, 2018 net asset value per unit. In aggregate, more Class A shares were tendered for retraction than Preferred shares. The purpose of the share subdivision is to maintain the requirement that an equal number of Class A shares and Preferred shares remain outstanding.
Immediately after the special retraction payment on December 17, 2018, there will be 14,320,344 Preferred shares and 13,641,379 Class A shares outstanding. Shareholders of record as at the close of business on December 21, 2018 (the “Record Date”) will receive, on December 21, 2018 (the “Payment Date”), 0.0497724607 of an additional Class A share for each Class A share held. In the event that the share subdivision would otherwise result in the issuance of fractional shares, no fractional Class A shares will be issued and the number of Class A shares each holder shall receive will be rounded down to the nearest whole number. The subdivision is a non-taxable event.
It is expected that the Class A shares will trade on a split-adjusted basis at the opening of trading on Thursday, December 20, 2018.
The impact of the Class A share subdivision will be reflected in the next reported net asset value per unit as at December 31, 2018. Net assets of the Company after the retraction payments will be approximately $174.9 million.
This information amends the press release issued on December 13, 2018.