CanBanc Income Corp. Announces Meeting to Eliminate Termination Date and Approve Conversion to an ETF
TORONTO, June 12, 2015 - CanBanc Income Corp. (the "Fund") (TSX: CIC.UN) announces that a special meeting of shareholders will be held on Thursday, July 9, 2015. If required, an adjourned meeting will be held on Friday, July 10, 2015.
At the meeting, shareholders will be asked to eliminate the Fund's fixed termination date and to approve the conversion of the Fund from a closed-end fund to an exchange traded fund (an "ETF").
First Asset Investment Management Inc., the manager of the Fund, believes that the Fund remains an attractive investment opportunity for its shareholders and there is no reason to terminate the Fund on August 31, 2015. The elimination of the Fund's termination date will enable shareholders to potentially defer any capital gains tax liability that otherwise would have been realized on the termination of the Fund, and also preserves valuable tax attributes of the Fund in the form of capital losses and non-capital loss carry-forwards. If this resolution is approved, shareholders who do not wish to remain as investors in the Fund will be able to redeem their shares at net asset value through a special redemption right on or about August 31, 2015.
If the resolution eliminating the termination date is approved, shareholders will also be asked to approve the conversion of the Fund from a closed-end fund to an ETF. The manager believes that the conversion will benefit existing shareholders through greater market liquidity and trading efficiency, potential benefits from economies of scale through the continuous offering of shares, and a reduction in the management fee to 0.65% from 1.05% of NAV per share. In addition, to the extent that in the future additional class of the Fund are offered, including classes offering new mandates, shareholders of the exchange-traded fund will have the ability to switch between such classes on a tax-deferred basis. If approved, the manager anticipates implementing the conversion by September 2015, subject to obtaining a receipt for the final prospectus and any required third party or regulatory approvals.
The details of the meeting and the manager's proposals are further described in a management information circular to be mailed to shareholders on or about June 18, 2015.
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SOURCE First Asset Close-End Funds
For further information: Please call Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.