M-Split Corp.
TSX : XMF
TSX : XMF.PR.A

M-Split Corp.

February 18, 2009 16:51 ET

M-Split Corp.: Suspension of Dividends

TORONTO, ONTARIO--(Marketwire - Feb. 18, 2009) - M-Split Corp. ("the Company") announces that it has suspended its regular monthly dividends effectively immediately for Priority Equity ("Preferred") shareholders in order to preserve cash and to assist in rebuilding the net asset value in an attempt to meet longer term objectives. Since the Preferred shares are cumulative, this suspended dividend (and all subsequent dividends not paid) will be accrued to the benefit of the Preferred shareholders and recorded as a liability in the Company's net asset value. Also, there will not be a distribution paid to Class A Shares for February 27, 2009 as per the Prospectus which states no regular monthly dividends or other distributions will be paid on the Class A Shares in any month as long as the net asset value per unit is equal to or less than $12.50. The net asset value as of February 13, 2009 was $8.91 and has been adversely impacted by the significant decline in the Manulife stock held in the portfolio.

Since inception (April 18, 2007) Class A shareholders have received a total of $0.90 per share and Preferred shareholders have received a total of $0.94 per share, for a combined total of $1.84 per share.

As detailed in previous press releases, the Company has adopted a strategy (the Preferred Portfolio Protection Plan) intended to provide that the Preferred Share Repayment amount of the original $10.00 par value will be paid in full to holders of the Preferred shares on the termination date on December 1, 2014. As a result, the net assets of the Company as at February 18, 2009 are primarily invested in the Preferred Portfolio Protection Plan securities.

Contact Information

  • M-Split Corp.
    Investor Relations
    (416) 304-4443 or Toll Free: 1-877-4-Quadra (1-877-478-2372)
    Website: www.m-split.com