Dividend Growth Split Corp.

Dividend Growth Split Corp.

October 30, 2007 16:55 ET

Dividend Growth Split Corp. Extends Expiration Date of Exchange Option

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2007) - Dividend Growth Split Corp. (the "Company"), a split share corporation offering an investment in the common shares of 20 high dividend growth rate companies has announced an extension of the Company's exchange option (the "Exchange Option") with respect to its initial public offering. The cut-off date for the Exchange Option has been extended to November 15, 2007.

A prospective purchaser wishing to utilize the Exchange Option will have until 5:00 p.m. (Toronto time) on November 15, 2007 to deposit (in the form of a book-entry deposit) common shares of one or more Exchange Eligible Issuers referred to in the Company's preliminary prospectus dated September 27, 2007, through CDS Clearing and Depository Services Inc. CDS participants may have an earlier deadline for receiving instructions from their clients to make deposits pursuant to the Exchange Option.

Purchasers under the Exchange Option may elect to receive Units of the Company (consisting of one Class A and one Preferred share) or only Class A shares.

The exchange ratios and the prices used to determine the exchange ratios will be based on the weighted average trading price of the shares of the Exchange Eligible Issuers on the TSX during the 3 consecutive trading days ending on November 16, 2007 (adjusted for distributions) and will be announced in a press release to be issued by the Company on or about November 19, 2007. The Exchange Option is subject to the terms and conditions of the Preliminary Prospectus. All other terms and conditions of the Exchange Option remain in full force and effect.

Dividend Growth Split Corp. has been created to provide investors with an investment in 20 large capitalization Canadian equities selected from those TSX-listed equities that have demonstrated the highest dividend growth rates over a five-year period and have a current dividend yield of at least 2% per annum, utilizing a split share structure on a low cost basis.

Class A shareholders will receive the benefits of monthly cash distributions targeted to be 8.0% per annum, low management fees and the opportunity for growth in net asset value. Preferred shareholders will receive attractive quarterly distributions of 5.25% per annum supported by the high credit quality of the underlying assets. The Preferred shares have been provisionally rated Pfd-2 by Dominion Bond Rating Service Limited. Highstreet Asset Management Inc. has been retained to selectively write covered call and cash covered put options to generate additional distributable income for the fund.

For further information, please contact your financial advisor or visit our website at www.bromptongroup.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice-President
    (416) 642-6008
    Website: www.bromptongroup.com