Folio Asset Management Limited

Folio Asset Management Limited

November 27, 2008 09:00 ET

Canadian Diversified Resource Investment Listed Liquidity Fund ("DRILL") Announces Amended and Restated Preliminary Prospectus and Confirms Deposit Date for Exchange Option

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2008) - Folio Asset Management Limited (the "Manager") is pleased to announce that an amended and restated preliminary prospectus for the Canadian Diversified Resource Investment Listed Liquidity Fund ("DRILL" or the "Fund") has been filed with the securities regulatory authorities in each of the Provinces of Canada.

The Fund proposes to issue units (the "Units") of the Fund at a price of $10.00 per Unit (the "Offering"). Each Unit consists of one transferable trust unit ("Trust Unit") and one Trust Unit purchase warrant ("Warrant"). The Units will separate into Trust Units and Warrants upon the earlier of the closing of the Fund's over-allotment option and the 30th trading day following the closing of the Offering. Each Warrant entitles the holder to purchase one Trust Unit at a subscription price of, (i) $10.00 on May 15, 2009, (ii) $11.00 on May 17, 2010, and (iii) $12.00 on May 16, 2011. Warrants not exercised on or before 5:00 p.m. (Toronto time) on May 16, 2011 will be void and of no value.

Prospective Purchasers may purchase Units either by cash payment or exchange of freely tradeable securities of Exchange Eligible Issuers (as disclosed in the amended and restated preliminary prospectus). The number of Units issuable in exchange for the securities of an Exchange Eligible Issuer will be determined by dividing (i) the average of the volume weighted average trading price of such securities on the Toronto Stock Exchange or TSX Venture Exchange, as the case may be, during the ten consecutive trading days ending on December 15, 2008, as adjusted to reflect distributions declared by any Exchange Eligible Issuer that will not be received by the Fund, by (ii) $10.00. Prospective Purchasers will be required to deposit securities of Exchange Eligible Issuers with Computershare Investor Services Inc. through CDS Clearing and Depository Services prior to 5:00 p.m. (Toronto time) on December 15, 2008. The Fund has determined to extend the Exchange Option deposit period to December 15, 2008 (as opposed to December 12, 2008 as stated in the amended and restated preliminary prospectus).

The Fund has been created to provide investors with (i) exposure to an actively managed portfolio (the "Portfolio") of publicly traded equity and convertible debentures of Canadian Oil & Gas Issuers, and (ii) the opportunity for long-term capital appreciation.

The Manager has retained Fiera Capital Inc. to provide investment advisory and portfolio management services to the firm. Fiera is an independent Canadian investment management firm with more than $17 billion in assets under management.

The Fund has been created to invest in (i) publicly traded equity and convertible debt securities of Canadian oil and gas issuers and (ii) investments in private Canadian oil and gas issuers.

Research Capital Corporation and Canaccord Capital Corporation, along with a syndicate consisting of Blackmont Capital Inc., Desjardins Securities Inc., GMP Securities L.P., Raymond James Ltd., Wellington West Capital Markets Inc., Haywood Securities Inc. and MGI Securities Inc. (collectively the 'Agents"), will act as agent for the Offering.

For a list of the Exchange Eligible Issuers, please visit

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 Fund. The forward-looking statements are not historical facts but reflect the Fund'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 Manager 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 Manager 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.

An amended and restated preliminary prospectus dated November 25, 2008 containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The amended and restated preliminary prospectus is still subject to completion or amendment. Copies of the amended and restated preliminary prospectus may be obtained from any of the Agents. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

All capitalized terms noted herein but not defined are as per the amended and restated preliminary prospectus dated November 25, 2008.

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