TORONTO, ONTARIO–(Marketwired – March 23, 2017) –
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES
LOGiQ Asset Management Ltd. (TSX:LGQ) (the “Manager“) and Aston Hill Corporate Funds Inc. announced today that, as a result of proposed amendments to the Income Tax Act (Canada) (the “Tax Act“) announced in the Federal Budget on March 22, 2017 (the “Proposed Amendments“), there will be certain changes to the proposed merger announced in their press release dated March 15, 2017 entitled “Proposed Mergers and Special Meetings” (the “March 15 Press Release“) in respect of the corporate class funds of Aston Hill Corporate Funds Inc. The proposed merger of Aston Hill Canadian Total Return Fund and Aston Hill U.S. Conservative Growth Fund into Aston Hill Total Return Fund announced in the March 15 Press Release is not affected by the Amendments and the special meeting of unitholders of such funds will proceed as previously announced.
The Proposed Amendments propose to amend the Tax Act such that a mutual fund corporation comprised of one or more corporate classes may merge into multiple mutual funds trusts on a tax-deferred basis.
As a result of the Proposed Amendments, the special meeting of the holders of each series of shares (collectively, the “Shareholders“) of Aston Hill High Income Class, Aston Hill Strategic Yield Class and Aston Hill Total Return Class (collectively, the “Terminating Funds“) announced in the March 15 Press Release will be cancelled and the proposed merger of the Terminating Funds into Aston Hill Strategic Yield Fund will not proceed.
Instead, the Manager plans to proceed with the proposed mergers (the “New Mergers“) of each of the Terminating Funds into its corresponding trust (collectively, the “Continuing Funds“) as follows:
|Terminating Funds||Continuing Funds|
|Aston Hill High Income Class||Aston Hill High Income Fund|
|Aston Hill Strategic Yield Class||Aston Hill Strategic Yield Fund|
|Aston Hill Total Return Class||Aston Hill Total Return Fund|
Shareholders will, on the effective date of the applicable New Merger, receive units of such series of the corresponding Continuing Fund equivalent to the series of shares held by the Shareholder in a Terminating Fund. The number of units of a series of a Continuing Fund received will be determined by multiplying the number of shares of the applicable series of a Terminating Fund held by the Shareholder at the close of business prior to the effective date of the applicable New Merger by an exchange ratio (which will be equal to the net asset value per series of shares of such Terminating Fund on the business day prior to the effective date of such Merger, divided by the net asset value per the equivalent series of units of the applicable Continuing Fund, on such date).
The Manager will provide Shareholders with 60 days’ written notice of the New Mergers, which are expected to occur on or about May 31, 2017.