Canadian General Investments, Limited
TSX : CGI
TSX : CGI.PR.B
TSX : CGI.PR.C
LSE : CGI

Canadian General Investments, Limited

April 29, 2013 09:42 ET

Canadian General Investments, Limited

TORONTO, CANADA--(Marketwired - April 29, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

Canadian General Investments, Limited (TSX:CGI)(TSX:CGI.PR.B)(TSX:CGI.PR.C)(LSE:CGI) (the "Company") announced today that it has provided notice to holders of its $75,000,000 4.65% Cumulative Redeemable Class A Preference Shares, Series 2 (the "Series 2 Shares") that in accordance with the terms of the Series 2 Shares it will redeem all of the issued and outstanding Series 2 Shares on May 29, 2013, for a price of $25.00 per Series 2 Share plus all accrued and unpaid dividends (from and including the last scheduled dividend payment date, March 15, 2013, to, but excluding, the date of redemption, and being in the amount of $0.23887 per share). This redemption will initially be funded by a short-term loan from a Canadian chartered bank.

The Company further announced today that it has entered into an agreement with a syndicate of investment dealers led by Scotia Capital Inc. pursuant to which the syndicate has agreed to purchase 3,000,000 3.75% Cumulative Redeemable Class A Preference Shares, Series 4 of the Company (the "Series 4 Shares") for gross proceeds of $75,000,000. The net proceeds of the offering, which is expected to close on May 30, 2013, will be used, together with available cash, to repay the short-term loan entered into to fund the redemption of the Series 2 Shares.

The Series 4 Shares will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

This announcement is for information purposes only and does not constitute an offer to sell for, or the solicitation of an offer to buy or subscribe for, any securities in the Company. No offer for sale or subscription of securities is being made in or into the United Kingdom. The short form prospectus proposed to be filed in respect of the Series 4 Shares will not comprise a prospectus for the purposes of the UK Prospectus Rules and will not be approved or filed with the UK Financial Conduct Authority. No application is being made for the admission of the Series 4 Shares to the official list of the Financial Conduct Authority.

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