Stone 2004 Flow-Through Limited Partnership

Stone 2004 Flow-Through Limited Partnership

May 16, 2006 16:33 ET

Stone 2004 Flow-Through Limited Partnership Completes Rollover Transaction

TORONTO, ONTARIO--(CCNMatthews - May 16, 2006) - Stone & Co. Limited ("SCL"), the promoter of Stone 2004 Flow-Through Limited Partnership ("Partnership") CUSIP#86175U101, announced that the Partnership completed the transfer and sale (the "Rollover Transaction") of all of the property and assets of the Partnership on a tax-deferred basis to Stone & Co. Corporate Funds Limited (a mutual fund corporation) (the "Mutual Fund Corporation") in exchange for Series A Resource Plus Class shares of the Mutual Fund Corporation (the "Resource Plus Class Shares") on Monday May 8, 2006.

The Rollover Transaction was approved by more than two-thirds of the limited partners of the Partnership (the "Limited Partners") at a special meeting of the Partnership held on April 26, 2006.

An investment in limited partnership units ("Units") of the Partnership were exchanged on a tax-deferred basis for Resource Plus Class Shares with equal value pursuant to a transfer agreement dated May 5, 2006 between the Partnership and the Mutual Fund Corporation. The Partnership received 6.3716 Resource Plus Class Shares of the Mutual Fund Corporation for each Unit held based on a net asset value of $30.168 per Unit and a net asset value of $4.735 per Resource Plus Class Share. The Partnership had net assets of $19,952,885 at the time of the transfer. The Partnership's original subscription price in 2004 was $25.00, resulting in an after tax total return on money at risk of approximately 56.7%. The capital gains tax liability that would arise upon disposition can be deferred by retaining the Resource Plus Class Shares of the Mutual Fund Corporation.

SCL is the manager of the Stone Mutual Funds and specializes in structuring and managing high quality investment products for Canadian investors. SCL is also the promoter of Stone 2005 Flow-Through Limited Partnerships.


Contact Information

  • Stone & Co. Limited
    Wan Kim
    Senior Vice-President, National Sales
    1 (877) 812-0792