TORONTO, ONTARIO--(Marketwired - Nov. 4, 2013) - The Board of Directors of Capital Gains Income STREAMS Corporation ("CG STREAMS") announces details in connection with the merger of CG STREAMS into Dividend 15 Split Corp. ("Dividend 15") that is scheduled to occur on or about December 1, 2013. The merger was previously overwhelmingly approved by 94% of voting shareholders at the CG STREAMS shareholder meeting held on July 10, 2013. CG STREAMS is currently awaiting a decision on the merger from the Canadian securities administrators.
Under the proposed merger timeline, all Capital Yield (TSX symbol CGQ) and Equity Dividend (TSX symbol CGQ.E) shares outstanding on December 1, 2013 will automatically be exchanged into an equal dollar amount of Dividend 15 units. One unit of Dividend 15 is comprised of one Class A share (TSX symbol DFN) and one Preferred share (TSX symbol DFN.PR.A). The proposed merger will be based on the applicable relative net asset value (NAV) exchange ratio on November 28, 2013. This process will occur automatically, subject to final regulatory approvals, and no further action is required by CGQ or CGQ.E shareholders wishing to participate in the merger.
Based on the current NAV exchange ratios and the market value of a Dividend 15 unit (as at October 31, 2013), CGQ shareholders would receive the equivalent of $26.42 in market value of Dividend 15 units for each CGQ share exchanged. CGQ.E shareholders would receive the equivalent of $4.19 in market value of Dividend 15 units for each CGQ.E share exchanged. The actual exchange ratios used for the merger will be based on the November 28, 2013 NAVs of each of CG STREAMS and Dividend 15.
CG STREAMS shareholders who do not wish to participate in the merger have a special retraction right which allows them to exit their investment in CG STREAMS on the same basis as if it were to be wound up on December 1, 2013 rather than merged into Dividend 15. To exercise such right, a retraction notice must be received by CDS Clearing and Depository Services Inc. ("CDS") no later than 5:00 pm on November 15, 2013. CG STREAMS shareholders must submit this retraction request to their investment dealer in sufficient time to permit their investment dealer to forward it to CDS by 5:00 pm on November 15, 2013. The final retraction price for each class of share will be based on the November 27, 2013 NAV of CG STREAMS and will be paid to shareholders exercising this special retraction right no later than November 29, 2013. Based on the current NAV, CGQ shareholders would receive $25.00 and CGQ.E shareholders would receive approximately $3.97. Based on current NAVs, management does not believe that this retraction right is in shareholder best interest from a financial perspective and therefore recommends that shareholders do NOT exercise this retraction right.
For full details on the merger, including the formula for calculating the retraction price for CGQ and CGQ.E shares, please review the Notice of Special Meeting of Shareholders and the Management Information Circular which is available on SEDAR and the Company's website at www.quadravest.com.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Company. The forward-looking statements are not historical facts but reflect the Company's 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 Company 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 Company 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.