Canoe Financial Announces Closing of Overnight Offering of Canoe EIT Income Fund
(Calgary, Alberta) – June 30, 2021, Canoe EIT Income Fund (the “Fund”) (TSX: EIT.UN) (TSX: EIT.PR.A) (TSX: EIT.PR.B) is pleased to announce it has closed the previously announced overnight offering of 7,273,000 Units of the Fund (the “Units”). Total gross proceeds of the offering were approximately $88 million. The Units will trade on the Toronto Stock Exchange under the existing symbol of “EIT.UN”.
The offering was led by National Bank Financial Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc., and also included, Canaccord Genuity Corp., iA Private Wealth Inc., Hampton Securities Limited, Raymond James Ltd., Richardson Wealth Limited, Echelon Wealth Partners Inc., Wellington-Altus Private Wealth Inc., Desjardins Securities Inc., Haywood Securities Inc., Manulife Securities Incorporated and Research Capital Corporation.
The Units were offered at a price of $12.10 per Unit to yield 9.9%.
Net proceeds of the offering will be used by the Fund in accordance with its investment objectives and investment strategies, subject to the investment restrictions of the Fund. The Fund’s regular monthly distribution of $0.10 per unit for unitholders of EIT.UN 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.
About the Fund
Canoe EIT Income Fund is one of Canada's largest diversified closed-end investment funds and is listed on the Toronto Stock Exchange (TSX) under the symbol EIT.UN. The Fund is designed to maximize monthly distributions and capital appreciation by investing in a broadly diversified portfolio of high quality dividend paying securities. The Fund is listed on the TSX under the symbols EIT.UN, EIT.PR.A and EIT.PR.B, and is actively managed by Robert Taylor, Senior Vice President and Portfolio Manager, Canoe Financial.
About Canoe Financial LP
Canoe Financial is one of Canada’s fastest growing independent mutual fund companies managing over $10 billion in assets across a diversified range of award-winning investment solutions. Founded in 2008, Canoe Financial is an employee-owned investment management firm focused on building financial wealth for Canadians. Canoe Financial has a significant presence across Canada, including offices in Calgary, Toronto and Montreal.
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Forward Looking Statement: Certain statements in this 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 forward-looking statements including, but not limited to, changes in general economic and market conditions and other risk factors. Although 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. 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. 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.
Investors will usually pay brokerage fees to their dealer if they purchase or sell units of the Fund on the Toronto Stock Exchange. If the units are purchased or sold on the Toronto Stock Exchange, investors may pay more than the current net asset value when buying Units of the Fund and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the Fund in these documents. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read information filed about the Fund on www.sedar.com before investing. The indicated rates of return are 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.
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.