Picton Mahoney Asset Management to Acquire Five Vertex One Asset Management Inc. Funds

VANCOUVER, Aug. 26, 2019 /CNW/ - Vertex One Asset Management Inc. ("Vertex One") and Picton Mahoney Asset Management ("Picton Mahoney") today announced that they have entered into a letter of intent in connection with a proposed transaction whereby Picton Mahoney will acquire the investment fund management contracts for the five hedge funds and alternative mutual funds listed below, with approximately $380 million in assets.

Hedge Funds	Alternative Mutual Funds
Vertex Arbitrage Fund	Vertex Liquid Alternative Fund
Vertex Arbitrage Fund Plus	Vertex Liquid Alternative Fund Plus
	Vertex Bond Alpha Fund

The Vertex Liquid Alternative Fund, Vertex Liquid Alternative Fund Plus and Vertex Bond Alpha Fund, are offered publicly pursuant to a simplified prospectus for alternative mutual funds dated January 11, 2019 (the "Simplified Prospectus"), and the Vertex Arbitrage Fund and Vertex Arbitrage Fund Plus, which are offered privately pursuant to prospectus exemptions (these five funds, collectively, the "Funds").

The Funds will continue to be managed by Craig Chilton and Tom Savage, the current portfolio managers of the Funds, who intend to join Picton Mahoney upon the closing of the proposed transaction.  

"We are pleased to acquire some of Canada's leading risk arbitrage investment strategies to complement our broad line-up of alternative solutions," said David Picton, President, CEO & Portfolio Manager at Picton Mahoney. "We believe Canadian investors should have a full range of investment solutions that can help fortify their investment portfolio. The addition of these Vertex One Funds will offer more choice and access to solutions, consistent with our philosophy of helping investors meet their long-term goals with more certainty."

"We look forward to joining the Picton Mahoney organization. This transaction represents an incredible opportunity for Canadian investors looking for investment solutions that focus on risk management," said Tom Savage, Portfolio Manager, Vertex One.

"The Vertex One Arbitrage Team and Picton Mahoney have both persevered through challenging and volatile market cycles and are experienced in using sophisticated alternative investment strategies to help deliver a smoother ride for investors," said Craig Chilton, Portfolio Manager, Vertex One.  

"Having known David Picton for over 25 years, I believe the Vertex Arbitrage Funds are excellently suited for Picton Mahoney's clients and their range of investment solutions" said John Thiessen, Founder, Vertex One.  "Both Vertex One and Picton Mahoney were pioneer's in the Canadian hedge fund and new liquid alternative fund industries, and together we look forward to continued prosperity, innovation and growth in the Canadian alternative investment landscape."

The proposed transaction is expected to close during the last quarter of 2019, subject to the entering into of a definitive agreement, and the receipt of all regulatory and unitholder approvals. Upon completion of the proposed transaction, Picton Mahoney will become the investment fund manager and portfolio manager of each of the Funds and all of the Funds will undergo a name change to continue under the Picton Mahoney branded-family of funds.

Unitholders of the Funds will also be asked to approve certain other changes.  Details about the changes will be contained in meeting materials to be mailed to unitholders of the Funds.

Additional details regarding the proposed transaction and the other changes affecting the Vertex Liquid Alternative Fund, Vertex Liquid Alternative Fund Plus and Vertex Bond Alpha Fund will be set out in amendments to the Simplified Prospectus, Annual Information Form and Fund Facts, which will be available at www.sedar.com. 

About Vertex One Asset Management Inc.

As one of the longest-running alternative investment managers in Canada, Vertex One Asset Management is proud to be a Canadian-run, employee-owned firm, delivering over 20 years of quality alternative investment solutions for retail and institutional investors.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Facts and the Simplified Prospectus for the funds before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.  Alternative funds can only be purchased through a registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale.  Information in this news release, other than statements of historical fact, may be forward-looking information.  Forward-looking information contained in this news release includes, but is not limited to, statements regarding the completion of the acquisition of the investment fund management contracts for the Funds by Picton Mahoney, the appointment of Picton Mahoney as the investment fund manager and portfolio manager of the Funds, the continued role of Mr. Savage and Mr. Chilton as portfolio managers to the Funds, and their joining Picton Mahoney, upon completion of the proposed transactions, the proposed special meetings of unitholders of the Funds, the mailing of meeting information in connection with these meetings, unitholder and regulatory approval for the proposed transactions, and the completion of the proposed transactions.  By their very nature statements that constitute forward-looking information are subject to numerous risks and uncertainties, some of which are beyond Vertex One's control.  These risks include, but are not limited to, the ability of Vertex One to successfully negotiate a definitive agreement with Picton Mahoney with respect to the proposed transactions, the ability of Vertex One to obtain unitholder and regulatory approval for the proposed transactions, and the satisfaction of the other conditions of closing which may be included in a definitive agreement with Picton Mahoney.  Although forward-looking information contained in this press release is based upon what management of Vertex One believes are reasonable assumptions, there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Any forward-looking information in this news release is provided as at the date of this news release, based upon the opinions and estimates of management and information available to management as at the date of this news release. Vertex One undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information contained in this news release.

SOURCE Vertex One Asset Management Inc.

Media enquiries: Vertex One Asset Management, T 604 681 5787, E [email protected]