Canoe Financial Announces Successful Overnight Offering of Canoe EIT Income Fund
CALGARY, Alberta, Feb. 14, 2019 -- Canoe EIT Income Fund (the “Fund”) (TSX: EIT.UN) (TSX: EIT.PR.A) (TSX: EIT.PR.B) is pleased to announce it has completed the overnight marketing of 6,200,000 Units of the Fund (the “Units”). Total proceeds of the offering, prior to any exercise of the over-allotment option, are expected to be approximately $70 million.
The offering is being co-led by National Bank Financial Inc., CIBC World Markets Inc., Scotia Capital Inc. and RBC Capital Markets and also includes TD Securities Inc., BMO Nesbitt Burns Inc., Industrial Alliance, Raymond James Ltd., GMP Securities L.P., Haywood Securities Inc., Canaccord Genuity Corp., Echelon Wealth Partners, Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated (the “Agents”).
The sales period of the overnight offering has now ended. The offering is expected to close on or about February 22, 2019 and is subject to certain closing conditions, including approval by the Toronto Stock Exchange.
The Agents will have an option to purchase up to an additional 300,000 Units at the issue price to cover over-allotments, exercisable in whole or in part at any time until 30 days after the closing date.
The Units were offered at a price of $11.30 per Unit to yield 10.6%. The closing price on the TSX of the Units on February 13, 2019 was $11.46.
The Fund intends to use the proceeds from the offering in accordance with the investment objectives and investment strategies of the Fund, subject to the investment restrictions of the Fund.
The Fund’s regular monthly distribution of $0.10 per unit for unitholders of EIT.UN units remains unchanged. The Fund has maintained the $0.10 per unit monthly distribution since August 2009, through varying market conditions. The Fund’s annual voluntary redemption feature for unitholders of EIT.UN units remains unchanged.
A prospectus supplement to the Fund’s short form base shelf prospectus dated October 25, 2018 containing important information about the Units being offered will be filed with the securities commissions or similar authorities in all of the provinces and territories of Canada. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada.
The Units have not been, nor will be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to U.S. persons absent registration or applicable exemption from the registration requirement of such Act and applicable state securities laws. This news release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction.
About the Fund
The Fund is one of Canada's largest, diversified closed-end investment funds and is listed on the TSX under the symbol EIT.UN. The Fund is actively managed and invests in a diversified portfolio of income-generating and capital growth-oriented securities listed primarily on the TSX. The Fund is designed to maximize distributions and net asset value for the benefit of its unitholders. The Fund is managed by Robert Taylor, Senior Vice President and Portfolio Manager of Canoe Financial LP.
About Canoe Financial LP
Canoe is one of Canada’s fastest growing independent mutual fund companies managing $4.5 billion in assets across a diversified range of award-winning mutual funds and private energy equity products. Founded in 2008, Canoe Financial LP is an employee-owned investment management firm focused on building financial wealth for Canadians. Canoe has offices in Calgary, Toronto, Vancouver, Winnipeg, and Montreal.
Investor Relations Canoe Financial LP
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Forward Looking Statement: Certain statements included in this news release constitute forward looking statements which reflect Canoe Financial LP’s current expectations regarding future results or events. Words such as “may,” “will,” “should,” “could,” “anticipate,” “believe,” “expect,” “intend,” “plan,” “potential,” “continue” and similar expressions have been used to identify these forward-looking statements. In addition, any statement regarding future performance, strategies, prospects, action or plans is also a forward-looking statement. Market predictions and forward-looking statements are subject to known and unknown risks and uncertainties and other factors that may cause actual results, performance, events, activity and achievements to differ materially from those expressed or implied by such statements. Forward looking statements involve significant risks and uncertainties and a number of factors could cause actual results to materially differ from expectations discussed in the forward looking statements including, but not limited to, changes in general economic and market conditions and other risk factors. Although the forward-looking statements are based on what Canoe Financial LP believes to be reasonable assumptions, we cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the current date and we assume no obligation to update or revise them to reflect new events or circumstances.
The Fund makes monthly distributions of an amount comprised in whole or in part of return of capital (ROC) of the net asset value per unit. A ROC reduces the amount of your original investment and may result in the return to you of the entire amount of your original investment. ROC that is not reinvested will reduce the net asset value of the Fund, which could reduce the Fund’s ability to generate future income. You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution.
Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the information filed about the Fund on www.sedar.com before investing. The indicated rates of return are the historical and annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Investment funds are not guaranteed and past performance may not be repeated.