Canadian Life Companies Split Corp.
TSX : LFE
TSX : LFE.PR.A

Canadian Life Companies Split Corp.

June 19, 2012 14:19 ET

Canadian Life Companies Split Corp.: Class A Share Rebalancing

TORONTO, ONTARIO--(Marketwire - June 19, 2012) - Canadian Life Companies Split Corp. (the "Company") announces a Class A share consolidation for all Class A shareholders of record on June 25, 2012 (the "Consolidation") that will decrease the number of Class A shares held by each Class A shareholder. The purpose of the share Consolidation is to maintain an equal number of Class A shares and Preferred shares outstanding. The intrinsic value of each investor's holdings in Class A shares will remain the same after the Consolidation. The decrease in the number of Class A shares would be proportionate to the increase in the net assets attributable to the Class A shares.

As a result of the successful vote to reorganize the Preferred shares of the Company at the recent Special Meeting of Shareholders held on April 16, 2012, both Class A shareholders and Preferred shareholders were given a special retraction right. This special retraction right allowed both classes of shareholders to tender one or both classes of shares. In aggregate, there were more Preferred shares tendered for retraction than Class A shares. Since the Company is required to maintain an equal number of shares outstanding for each class as per the prospectus, the Company must decrease the Class A shares to match the number of Preferred shares.

Immediately after payments for the May and June monthly retraction and the special retraction right on June 19, 2012, there will be 7,776,613 Preferred shares and 10,693,243 Class A shares outstanding. In order to restore an equal amount of shares outstanding for each class, Class A shareholders of record as at June 25, 2012 will receive approximately 0.7272455138 Class A shares for each Class A share outstanding. The decrease in shares (Consolidation) is a non taxable event.

The impact of the Class A share Consolidation will be reflected in the next reported net asset value per unit as at the June 22, 2012 Consolidation date. Net assets of the Company after the retraction payments will be approximately $91.7 million.

Contact Information

  • Canadian Life Companies Split Corp.
    Investor Relations
    416-304-4443, toll free at 1-877-4-Quadra (1-877-478-2372)
    www.lifesplit.com