NewGrowth Corp. - Capital Shareholders Approval of Capital Reorganization

TORONTO, March 26, 2014 /CNW/ - NewGrowth Corp. (the "Company") announced today that holders of its Class A Capital Shares ("Capital Shares") have overwhelmingly approved a share capital reorganization (the "Reorganization") allowing holders of Capital Shares, at their option, to retain their investment in the Company after the scheduled redemption date of June 26, 2014. The Reorganization will permit holders of Capital Shares to extend their investment in the Company beyond the redemption date of June 26, 2014 for up to an additional 5 years. The Class B Preferred Shares, Series 2 will be redeemed on the same terms originally contemplated in their share provisions on June 26, 2014. In order to maintain the leveraged "split share" structure of the Company, the Company expects to create and issue a new series of Class B preferred shares on or about June 26, 2014.

Holders of Capital Shares electing to retain their investment in the Company will continue to enjoy the benefit of a leveraged participation in the capital appreciation of the Company's portfolio while potentially deferring any capital gains tax liability which would otherwise be realized on the redemption of their Capital Shares. As part of the Reorganization, the Company's portfolio of common shares of Canadian chartered banks, telecommunication, utility and pipeline companies will be expanded to include selected issuers in the oil and gas sector and will be rebalanced to equal weight.

Holders of Capital Shares who do not wish to continue their investment in the Company after June 26, 2014 must give notice that they wish to exercise their special retraction right and how they wish to be paid for their shares on or prior to April 18, 2014. Holders of Capital Shares who retract their Capital Shares will be paid on June 26, 2014. The Reorganization will become effective provided that holders of at least 1,287,000 Capital Shares retain their Capital Shares and do not exercise the special retraction right.

SOURCE: NewGrowth Corp.

Investor Relations
NewGrowth Corp.
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Web site: www.scotiamanagedcompanies.com