LOGiQ Capital 2016

Front Street Mutual Funds Limited

Front Street Mutual Funds Limited

April 28, 2017 15:54 ET

Proposed Merger and Special Meeting of Shareholders of Front Street Growth and Income Class

TORONTO, ONTARIO--(Marketwired - April 28, 2017) -

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LOGiQ Capital 2016 and Front Street Mutual Funds Limited announced today that a special meeting (the "Meeting") of the holders of each series of shares (collectively, the "Shareholders") of Front Street Growth and Income Class (the "Growth and Income Class") will be held on June 6, 2017, to consider the proposed merger (the "Merger") of the Growth and Income Class into Front Street Balanced Monthly Income Class (the "Balanced Monthly Income Class").

If approved at the Meeting, Shareholders will, on the effective date of the Merger, receive shares of such series of Balanced Monthly Income Class equivalent to the series of shares held by the Shareholder in Growth and Income Class. The number of shares of a series of Balanced Monthly Income Class received will be determined by multiplying the number of shares of the applicable series of Growth and Income Class held by the Shareholder at the close of business prior to the effective date of the Merger by an exchange ratio (which will be equal to the net asset value per series of shares of Growth and Income Class on the business day prior to the effective date of the Merger, divided by the net asset value per the equivalent series of shares of Balanced Monthly Income Class on such date).

The manager of Growth and Income Class, LOGiQ Capital 2016, and the board of directors of Front Street Mutual Funds Limited, believe the Merger will be beneficial to Shareholders because there is little opportunity to reduce the fixed costs individually associated with, and currently paid by, Growth and Income Class and Balanced Monthly Income Class, including expenses such as audit, legal, trustee, custody, transfer agency, independent review committee, filing and fund accounting fees. The fixed costs associated with Balanced Monthly Income Class after the Merger will be less than the total fixed costs currently paid by Growth and Income Class and Balanced Monthly Income Class and will be spread over a larger number of shares. In addition, Balanced Monthly Income Class is expected to have a larger asset base which will allow for greater portfolio diversification and a smaller proportion of assets set aside in the form of cash to fund redemptions. This may lead to the reduction of risk and increased returns. Shareholders will not be responsible for any costs associated with the Merger.

The Merger is subject to receipt of all required regulatory approvals and to the approval of the Shareholders at the special meeting. Assuming all such approvals are obtained, the Merger is expected to be completed on or about June 16, 2017.

Shareholders of record on May 2, 2017 will be entitled to receive notice of, and to vote, at the special meeting. An information circular containing details of the Merger will be mailed to Shareholders on or about May 15, 2017. The information circular will also be available at www.sedar.com.

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