Cyber Security Income & Growth Fund

Cyber Security Income & Growth Fund

September 22, 2015 19:01 ET

Cyber Security Income & Growth Fund Extends Deposit Deadline and Pricing Period for Exchange Option

TORONTO, ONTARIO--(Marketwired - Sept. 22, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Cyber Security Income & Growth Fund (the "Fund") announces that it has extended the deadline for the deposit of exchange eligible securities with respect to the initial public offering (the "Offering") of Class A Units and Class F Units of the Fund (collectively, the "Units").

Prospective purchasers investing in the Fund under the exchange option (the "Exchange Option") are now permitted to deposit their exchange eligible securities prior to 5:00 p.m. (Toronto time) on October 9, 2015 in the manner described in the preliminary prospectus of the Fund dated September 2, 2015 (the "Preliminary Prospectus"). Such deposits must be made in the form of a book-entry deposit with CST Trust Company, the Fund's agent for the exchange option, through CDS Clearing and Depository Services Inc. ("CDS"). Investment dealers, who will make these deposits through CDS, may have an earlier deadline for receiving instructions from investment advisors to deposit securities under the exchange option. The pricing period for the Exchange Option (the "Pricing Period") has also been revised and will be the period of five consecutive trading days ending on and including October 9, 2015. The Fund will issue a press release as soon as possible after the end of the Pricing Period announcing for each of the exchange eligible securities, among other things, the exchange ratio.

The Fund has filed and obtained a receipt for the Preliminary Prospectus from the securities regulatory authorities in each of the provinces and territories of Canada. The Fund proposes to issue Class A Units and Class F Units at a price of $10.00 per Unit in cash or by exchanging securities of issuers under the Exchange Option. BMO Nesbitt Burns Inc. (the "Manager"), the manager of the Fund, will pay all fees and expenses of the Offering. As a result, the net asset value per Unit immediately following the closing of the Offering will be $10.00 (assuming the price of the exchange eligible securities on the closing date of the Offering is the same as the price that was used to calculate the exchange ratios).

The Fund's investment objectives are to provide holders of Units (the "Unitholders") with: (i) monthly cash distributions; (ii) the opportunity for capital appreciation; and (iii) lower overall volatility of portfolio returns than would be experienced by owning the Constituent Securities (as defined below) directly.

The Fund will invest in securities (the "Constituent Securities") of the issuers actively involved in providing cyber-security technology and services that comprise the ISE Cyber Security™ Index (the "Index"). The Fund will invest in the same proportion as these Constituent Securities are reflected in the Index (the "Portfolio") and accordingly, the composition of the Portfolio will vary from time to time based on the composition of the Index. Cyber security refers to products (hardware/software) and services designed to protect computer hardware, software, networks and data from unauthorized access, vulnerabilities, attacks and other security breaches.

In order to seek to earn income from option premiums to supplement the dividends generated by the Constituent Securities and to lower the overall volatility of returns associated with the securities held in the Portfolio, the Portfolio Manager (as defined below) will write covered call options from time to time on up to 25% of the Portfolio. The monthly cash distributions to Unitholders are initially targeted to be $0.0416 per Unit ($0.50 per annum per Unit) representing an annual yield of 5.0% on the issue price.

BMO Asset Management Inc. (the "Portfolio Manager") will be responsible for implementing the investment strategy of the Fund including the option writing strategy. BMO Asset Management Inc. is a Canadian investment manager whose clients include pension funds, endowments, trusts, insurance company reserves, corporations and mutual funds. The Portfolio Manager is an indirect, wholly-owned subsidiary of Bank of Montreal.

BMO Nesbitt Burns Inc. is the promoter of the Fund, one of the agents in connection with the Offering, and will act as the manager of the Fund.

The syndicate of agents for the Offering is being co-led by BMO Capital Markets, CIBC, Scotiabank and National Bank Financial Inc., and also includes, Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Dundee Securities Ltd., Global Securities Corporation, Industrial Alliance Securities Inc., Laurentian Bank Securities Inc., Mackie Research Capital Corporation, Manulife Securities Incorporated and PI Financial Corp.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities of the Fund have not been registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to a U.S. person absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

"International Securities Exchange", "ISE", and "ISE Cyber Security™ Index" are trademarks of International Securities Exchange, LLC and have been licensed for use for certain purposes by BMO Nesbitt Burns Inc. in connection with the Fund. The Fund is not sponsored, endorsed, sold or promoted by ISE, LLC, and ISE, LLC makes no representation regarding the advisability of trading in the Fund.

The Preliminary Prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each 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 any 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.

CYBER SECURITY INCOME & GROWTH FUND

Contact Information

  • For further information please contact
    BMO Capital Markets
    1.866.864.7760