Front Street Resource unit separation
2007-10-18 18:50 MT - Miscellaneous
TSX bulletin 2007-1465
Further to Toronto Stock Exchange bulletin 2007-1042, dated July 20, 2007, which describes an initial public offering of units by Front Street Resource Performance Fund Ltd., and further to TSX bulletin 2007-1451, dated Oct. 16, 2007, which describes an additional offering of units, the equity shares and equity share purchase warrants comprising the units will trade separately commencing at the open on Monday, Oct. 22, 2007, at which time the units will be delisted.
Under the trading information set out below:
1. 34,567,500 equity shares will be listed, of which 15,605,000 equity shares will be issued and outstanding, and 18,962,500 equity shares will be reserved for issuance;
2. 16,283,750 warrants will be listed, of which 15,605,000 warrants will be issued and outstanding and 678,750 warrants will be reserved for issuance.
Equity share symbol: FRE
Equity share Cusip No.: 35902M 20 5
Equity share trading currency: Canadian dollars
Warrant symbol: FRE.WT
Warrant Cusip No.: 35902M 11 4
Warrant trading currency: Canadian dollars
Designated market-maker: W.D. Latimer Co. Ltd.
Registration of interests in and transfers of the equity shares and warrants shall be made only through the book-based system operated by CDS Clearing and Depository Services Inc. Transfers of ownership of equity shares or warrants will be effected through records maintained by CDS participants. No holder or an equity share or warrant will be entitled to a certificate. Accordingly, unitholders need not take any action with respect to receiving the equity shares and warrants upon the separation of the units. Additional information on the units, equity shares and warrants may be found in the final prospectuses dated June 28, 2007, and Sept. 28, 2007, which are available at www.sedar.com. Capitalized terms not otherwise defined are as defined in the prospectuses.
Warrants
Each whole warrant entitles the holder to purchase one equity share at the price of $11 per equity share on Nov. 9, 2009, by 4 p.m. (Toronto time).
Warrants may only be exercised on Nov. 9, 2009, and warrants not exercised on that date will be void and of no value.
The warrants will be governed by the terms of the warrant indenture dated as of July 24, 2007, and amended as of Sept. 28, 2007, between the fund and CIBC Mellon Trust Co. Upon the exercise of a warrant, the manager will pay a fee of 15 cents per warrant to the dealer whose client is exercising the warrant, and a fee of 10 cents per warrant to the agents. The warrant indenture provides for appropriate adjustments to the rights of holders of warrants in the event of stock dividends, subdivisions, consolidations or other forms of capital reorganization.
Dividends and distributions
It is the policy of the fund to pay dividends to the holders of equity shares in a year in an amount equal to all net realized capital gains, dividends and option premiums (other than option premiums in respect of options outstanding at year end), if any, earned by the fund in such year (net of expenses, taxes and loss carryforwards). Distributions paid on the equity shares may consist of ordinary dividends, capital gains dividends and non-taxable returns of capital.
Under the fund's automatic reinvestment plan, distributions payable to a shareholder, other than a shareholder who is a non-resident of Canada (for the purposes of the Tax Act), will be reinvested in additional equity shares issued by the fund from treasury unless the shareholder elects not to participate in the plan. To receive distributions in cash, a shareholder must notify his or her securities dealer. Distributions payable to shareholders who have redeemed their equity shares on a redemption date will be made in cash and will not be reinvested. |
