Canoe 'GO CANADA' Income Fund

November 17, 2010 09:00 ET

Canoe 'GO CANADA' Income Fund Announces Initial Public Offering

CALGARY, ALBERTA--(Marketwire - Nov. 17, 2010) -


Canoe Financial LP (the "Manager") is pleased to announce that a preliminary prospectus (the "Prospectus") in connection with an initial public offering of Combined Units for the Canoe 'GO CANADA' Income Fund (the "Fund") has been filed with, and a receipt therefor has been issued by, the securities regulatory authorities in each of the provinces and territories of Canada.

The Fund's investment objectives are to:

  • provide investors monthly cash distributions initially targeted to be 6.0% per unit per annum on the $12.00 offering price ($0.06 per unit per month or $0.72 per unit per annum); and
  • maximize Unitholders' risk-adjusted total returns.

The Fund has been created to invest in an actively managed, diversified portfolio (the "Portfolio") primarily comprised of equities and fixed income securities of Canadian businesses. The Manager has retained RiverStream Asset Management Ltd. (the "Portfolio Manager") as portfolio manager of the Fund. The Portfolio Manager has retained Haber Trilix Advisors, LP (the "Portfolio Advisor") as portfolio advisor.

The Fund is a closed-end investment fund governed by the laws of the province of Alberta which proposes to issue Combined Units of the Fund (the "Offering") at a price of $12.00 per Combined Unit. Each Combined Unit consists of one transferable trust unit (a "Unit") and one-half of one Unit purchase warrant (a "Warrant"). The Combined Units will separate into Units and Warrants upon the earlier of the closing of the Over-Allotment Option (as described in the prospectus) and the 30th day following the closing of the Offering. Prospective purchasers may purchase Units by cash payment or pursuant to an exchange of eligible securities under an exchange option (the "Exchange Option") as set out in the Prospectus. Pursuant to the Exchange Option, prospective purchasers are required to deposit their securities prior to 5:00 p.m. (Toronto time) on December 10, 2010. CDS participants may have an earlier deadline for receiving instructions. The Fund will issue a press release as soon as practicable after the close of business on January 10, 2011 announcing among other things, the applicable exchange ratio for each exchange eligible security.

Each Warrant will entitle the holder to purchase one Unit at the subscription price of $12.00 per Unit on or before 5:00 p.m. (Toronto time) on May 31, 2011 (the "Warrant Expiry Time"). Warrants not exercised by the Warrant Expiry Time will be void and of no value.

On or about January 31, 2013 the Fund will be converted to an open-end mutual fund. Prior to the conversion, Unitholders will have the right to surrender Units for redemption at an amount equal to the NAV per Unit on December 30, 2012.

The offering is being conducted by a syndicate of Agents co-led by RBC Capital Markets and CIBC and includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Canaccord Genuity Corp., GMP Securities L.P., HSBC Securities (Canada) Inc., Dundee Securities Corporation, Macquarie Private Wealth Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Desjardins Securities Inc., Mackie Research Capital Corporation, Manulife Securities Incorporated and Rothenberg Capital Management.

About Canoe Financial LP

The Manager is a privately owned investment management firm which together with its subsidiaries has over $1.6 billion in assets under management and a solid performance track record. The Manager is focused on helping Canadian investors and advisors meet their financial goals. The Manager, through its subsidiaries, provides investors with well managed, diversified, tax effective investment products through the EnerVest family of funds. The Manager also has significant experience in energy and resource investments. 

A preliminary prospectus containing important information relating to the Combined Units, the Units and the Warrants has been filed with securities commissions or similar authorities in all of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from your broker or from one of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued. Combined Units will not be offered for sale to residents of the United States. Capitalized terms used in this press release and not otherwise defined have the meanings given thereto in the preliminary prospectus.

Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect Canoe Financial LP and its affiliates (the "Manager") current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance may not be repeated.

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