Life & Banc Split Corp.
TSX : LBS

Life & Banc Split Corp.

February 11, 2011 10:21 ET

Life & Banc Split Corp. Files Final Prospectus for Warrant Offering

TORONTO, ONTARIO--(Marketwire - Feb. 11, 2011) -

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

Life & Banc Split Corp. (TSX:LBS) is pleased to announce that it has filed a final prospectus for an offering of warrants to Class A shareholders of the Company. Each Class A shareholder of record on February 22, 2011 will receive one half of one warrant for each Class A share held. 

One warrant will entitle the holder to purchase a Unit (consisting of one Class A share and one Preferred share of the Company) upon payment of the subscription price of $18.87, which is the sum of:

a) the most recently calculated NAV per Unit prior to the date of filing the preliminary prospectus; and 

b) the estimated per Unit fees and expenses of the offering.

Warrants may be exercised on or before the expiry date of March 24, 2011. The Company has applied to list the warrants on the TSX under the ticker symbol LBS.WT. Warrants will be distributed to client accounts on a best-efforts basis after the February 22, 2011 record date. There is no additional subscription privilege under this offering. A holder of warrants may only subscribe for Units by exercising their warrants by the expiry date. The closing prices on February 9, 2011 for both the Class A shares ($9.96) and Preferred shares ($10.40) amounted to $20.36, which was above the subscription price.

Proceeds from the warrant offering will be invested on an approximately equal weighted basis in a portfolio of the six Canadian banks (Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank) and four life insurance companies (Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc.) Successful completion of the warrant offering is expected to increase the trading liquidity of the Class A shares and Preferred shares, and reduce the ongoing management expense ratio of the Company.

For further information, please contact your financial advisor, call Brompton's investor relations line at 416-642-9051 (toll-free at 1-866-642-6001) or visit our website at www.bromptonfunds.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

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

Contact Information

  • Brompton Funds Management Limited
    Chris Cullen
    Senior Vice President
    (416) 642-9064