Canadian World Fund Limited
TSX : CWF

Canadian World Fund Limited

April 27, 2007 16:20 ET

Canadian World Fund Limited Announces Rights Offering

TORONTO, CANADA--(CCNMatthews - April 27, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE VIA US NEWSWIRE SERVICES

Canadian World Fund Limited (TSX:CWF) (the "Company") announces that it has filed a final short form prospectus which qualifies the distribution of rights (the "Rights") and common shares issuable on the exercise of the Rights in each of the provinces of Canada. The Company will issue Rights to subscribe for up to 4,101,350 common shares to shareholders of record at the close of business (Toronto time) on May 8, 2007.

Rights and Subscription Price: Each shareholder of record of the Company on May 8, 2007 will receive one Right for each common share held. Each Right will entitle the holder to purchase one common share (the "Basic Subscription Right") at the price of $6.25 until 4:00 p.m. (Toronto time) on June 5, 2007 (the "Expiry Date").

Discount to Market Price. The subscription price of $6.25 per share represents a discount of 10.5 per cent to the closing price of $6.98 per share on April 26, 2007.

Additional Subscription Privilege: Holders of Rights who fully exercise their Rights under the Basic Subscription Right are entitled to subscribe pro rata for additional common shares, if available, that were not subscribed for initially, on or before the Expiry Date.

Use of Proceeds: The net proceeds of the Rights offering will be used in a manner consistent with the Company's investment objective which is to provide superior long-term returns to investors. The strategy of the Company will continue to be to search for and acquire investments globally in securities of primarily publicly traded growth companies.

Dealer Managers: Blackmont Capital Inc. and TD Securities Inc. have been engaged to be the dealer managers for the Rights offering. The Company has agreed to pay the dealer managers an aggregate fee of $200,000 and a solicitation fee of $0.09 per common share issued under the Rights offering in respect of each subscription procured by a member of the soliciting dealer group (including the dealer managers). No solicitation fee will be paid in respect of an exercise of fewer than 700 Rights by any single beneficial subscriber, or in respect of Rights exercised by insiders.

Trading Information. The Rights will commence trading on the TSX on May 4, 2007, under the symbol CWF.RT. The Company's common shares trade on the TSX under the symbol CWF.

The Company has been advised that its directors and officers will be exercising all of their Rights under the Basic Subscription Right. In addition, the Company has been advised that its principal shareholders, New Annan Investments Ltd. and Third Canadian General Investment Trust Limited (companies controlled by Jonathan A. Morgan and Vanessa L. Morgan, who are also directors and officers of the Company), which own 27.94% and 27.31% of the common shares of the Company, respectively, each intend to exercise all of their Rights under the Basic Subscription Right.

Management and the Board of Directors of the Company believe that a capital expansion is in the best interests of the Company. The primary benefits that are anticipated are a larger asset base over which to spread fixed costs, better scale to build presently held and prospective global opportunities and increased awareness and liquidity in the Company's common shares.

The Rights offering is not, and under no circumstances is to be construed as, an offering of any common shares for sale in any jurisdiction outside of the provinces of Canada or a solicitation therein of an offer to buy any securities. Except as set forth in the final short form prospectus, the Rights may not be exercised by persons who are residents of any jurisdiction other than the provinces of Canada.

About Canadian World Fund:

Canadian World Fund Limited is a closed-end equity fund that endeavors to provide superior long-term returns by investing globally in securities of primarily publicly traded growth companies. The Company principally utilizes a bottom-up investment style in an effort to achieve this objective. The Company has been managed since its 1994 inception by Morgan Meighen & Associates Limited.

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