GMI Completes Closing of Over-Allotment Option, Announces 2010 Distributions
and the Separation of Units and Warrants
Co-Advised by Guardian and Middlefield
TORONTO, Nov. 16 /CNW/ - Middlefield Group, on behalf of GMIncome & Growth Fund ("GMI" or the "Fund"), is pleased to announce that the Fund has completed the closing of the over-allotment option granted to the agents in GMI's recently completed initial public offering. In conjunction with this closing, each GMI combined unit, which consisted of one Unit of the Fund and one unit purchase Warrant, has separated and the underlying Units and Warrants commenced trading on the Toronto Stock Exchange at the open on November 16, 2010 under the symbols GMF.UN and GMF.WT respectively. Each Warrant entitles the holder to purchase one Unit at a subscription price of $12.00 on or before 5:00 p.m. (Toronto time) on October 14, 2011 (the "Expiry Time"). Warrants not exercised by the Expiry Time will be void and of no value.
Guardian Capital LP ("GCLP") and Middlefield Capital Corporation ("MCC") act as Co-Advisors of the Fund. Led by John Priestman, GCLP and MCC have successfully co-advised several closed-end funds focused on the Canadian equity income sector since 2001. All of the closed-end funds for which GCLP and MCC act as co-advisors have paid distributions to date in accordance with their respective investment objectives.
GMI's investment objectives are to:
- pay monthly cash distributions to Unitholders initially targeted to be 7.0% per Unit per annum based on the original subscription price; and
- maximize total returns for Unitholders, consisting both of cash distributions and capital appreciation, while reducing risk and preserving capital through active investment management.
Middlefield Group is also pleased to announce that a distribution of $0.07 per Unit will be payable on each of December 15, 2010 and January 14, 2011 to GMI Unitholders of record on each of November 30, 2010 and December 31, 2010, respectively.
GMI seeks to achieve its investment objectives by investing in an actively managed, diversified portfolio comprised primarily of Canadian dividend-paying common shares, preferred shares, income trust units and convertible debentures. The Portfolio comprises securities which, in the view of the Co-Advisors, are of high quality issuers and which generate sufficient dividends or interest payments to allow the Fund to achieve its investment objectives, as well as units of income trusts which, in the view of the Co-Advisors, are undervalued and/or may be taken over at a premium to their market prices.
The syndicate of agents was co-led by CIBC World Markets Inc. and RBC Capital Markets and included BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., GMP Securities L.P., Canaccord Genuity Corp., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Macquarie Private Wealth Inc., Manulife Securities Incorporated, Wellington West Capital Markets Inc., Middlefield Capital Corporation and Worldsource Securities Inc.
This press release contains forward-looking information. The forward-looking information contained in this press release is based on the anticipated distributions and dividends to be paid on the securities of issuers anticipated to be included in the portfolio of the Fund. Actual future results, including the amount of distributions paid by the Fund, may differ from the anticipated monthly distribution amount. Specifically, the income from which distributions are paid may vary significantly due to: changes in portfolio composition; changes in distributions and dividends paid by issuers of securities included in the Fund's portfolio from time to time; there being no assurance that those issuers will pay distributions or dividends on their securities; the declaration of distributions and dividends by issuers of securities included in the portfolio will generally depend upon various factors, including the financial condition of each issuer and general economic and stock market conditions; the level of borrowing by the Fund; and the uncertainty of realizing capital gains. The risks, uncertainties and other factors that could influence actual results are described under "Risk Factors" in the Fund's prospectus dated September 29, 2010 and other documents filed by the Fund with the Canadian securities regulatory authorities. The forward-looking information contained in this press release constitutes the Fund's current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund's estimate as of any date other than the date of this press release.
For further information:
please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or at 1.888.890.1868.
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