Commerce Split Corp.

Commerce Split Corp.

March 26, 2010 10:34 ET

Commerce Split Corp. Announces Opening NAV for Reorganized Original Commerce Split Fund

TORONTO, ONTARIO--(Marketwire - March 26, 2010) - Commerce Split Corp. (the "Company") today announced that the opening net asset value per unit for the newly reorganized Original Commerce Split Fund was $9.36 as of the close of business on March 25, 2010. There were 1,707,491 units outstanding for total net assets of $16.0 million as at March 25, 2010. The net assets of the Original Commerce Split Fund are currently allocated approximately 82.7% to the Priority Equity Portfolio Protection Plan and approximately 17.3% to CIBC common shares. The Original Commerce Split Fund will continually rebalance the portfolio between the requirements of the Priority Equity Protection Plan and maintaining direct exposure to CIBC common stock.

The following is a summary of some of the principal provisions of the Priority Equity Shares 2010 and Class A Shares 2010 of the Original Commerce Split Fund. In general, these two classes of shares will retain the same characteristics as the existing Priority Equity and Class A Shares.

Priority Equity Shares 2010

Priority Equity Shares 2010 (Symbol YCM.PR.X) will continue to have the repayment target of $10 per share on December 1, 2014 as the primary investment objective. The Fund will continue to implement the Priority Equity Portfolio Protection Plan described in the original prospectus. Dividends are anticipated to remain suspended for the foreseeable future in order to preserve cash and to assist in rebuilding the net asset value of the Original Commerce Split Fund. Since the dividends on the Priority Equity Shares are cumulative, the suspended dividends (and all subsequent dividends not paid) will be accrued and are recorded as a liability in determining the net asset value of the Original Commerce Split Fund. The current amount of accrued dividends is $0.5688 per share representing 13 months of suspended dividends.

Class A Shares 2010

Class A Shares 2010 (Symbol: YCM.X) will continue to participate in any net asset value growth over $10.00 per Unit and dividends would be reinstated only if and when the net asset value per Unit exceeds $12.50. Each "Unit" consists of one Priority Equity Share 2010 and one Class A Share 2010.

Additional information regarding the Reorganization is contained in the Circular, available on SEDAR at or on the Company's website.

Contact Information

  • Commerce Split Corp.
    Investor Relations
    416-304-4443 or Toll Free: 1-877-4-Quadra (1-877-478-2372)