Stone & Co. Limited

Stone & Co. Limited
Stone 2003 Flow-Through Limited Partnership

Stone 2003 Flow-Through Limited Partnership

September 20, 2005 16:54 ET

Stone 2003 Flow-Through Limited Partnership Completes Rollover Transaction

TORONTO, ONTARIO--(CCNMatthews - Sept. 20, 2005) - Stone & Co. Limited ("SCL"), the promoter of Stone 2003 Flow-Through Limited Partnership ("Partnership") CUSIP#86175R108, announced that the Partnership completed the transfer and sale (the "Rollover Transaction") of all of the property and assets (excluding cash) of the Partnership on a tax-deferred basis to Stone & Co. Corporate Funds Limited (a mutual fund corporation) (the "Mutual Fund Corporation") in exchange for Series A Resource Plus Class shares of the Mutual Fund Corporation (the "Resource Plus Class Shares") on Monday September 19, 2005.

The Rollover Transaction was approved by more than two-thirds of the limited partners of the Partnership (the "Limited Partners") at a special meeting of the Partnership held on September 9, 2005.

An investment in limited partnership units ("Units") of the Partnership were exchanged on a tax-deferred basis for Resource Plus Class Shares ("Resource Plus") with equal value pursuant to a transfer agreement dated September 19, 2005 between the Partnership and the Mutual Fund Corporation. The Limited Partners received 5.2971 Resource Plus Class Shares of the Mutual Fund Corporation for each Unit held, based on a net asset value of $26.485 of the Partnership and a net asset value of $5.00 for the Resource Plus shares. The Partnership had net assets of $18,076,853 at the time of the transfer. The Partnership's original subscription price in 2003 was $25.00, resulting in an after tax total return on money at risk of approximately 35%. The capital gains tax liability that would arise upon disposition can be deferred by retaining the shares of the mutual fund.

SCL is manager of the Stone Mutual Funds and specializes in structuring and managing high quality investment products for Canadian investors. SCL is also the promoter of Stone 2004 and 2005 Flow-Through Limited Partnerships.

Contact Information

  • Stone & Co. Limited
    Wan Kim
    Senior Vice-President, National Sales
    1 (877) 812-0792