TORONTO, January 26, 2011 - Can-Financials Income Corp. (the "Company") announces that it has filed a final prospectus dated January 24, 2011 with the securities regulatory authorities of each of the Canadian provinces and territories for an initial public offering of up to 25 million shares (the "Shares") at a price of $10 per Share, for a maximum offering size of $250 million. The offering is scheduled to close on February 18, 2011. The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the Shares under the symbol FIC, subject to the fulfillment of TSX requirements.
The Company was created to invest on an equal weight basis in a portfolio (the "Portfolio") of the securities of the issuers comprising the S&P/TSX Capped Financials Sector Index (the "S&P/TSX Financials Index"), from time to time (the "Portfolio Issuers"). The S&P/TSX Financials Index is comprised of securities of Canadian financial sector issuers listed on the TSX, as selected by Standard & Poor's using their guidelines for evaluating capitalization and liquidity. There are currently 27 issuers included in the S&P/TSX Financials Index. The Portfolio will initially be approximately equal weighted, and each month First Asset Investment Management Inc. (the "Manager" or "First Asset") will employ a covered call option writing program on approximately, and not more than, 25% of the securities of each Portfolio Issuer, in order to seek to earn attractive tax effective income from dividends, distributions and call option premiums, lower the overall volatility of returns associated with owning a portfolio of these securities, and to generate capital appreciation for holders of Shares of the Company (the "Shareholders").
The objectives of the Company are to provide Shareholders with:
- quarterly distributions;
- the opportunity for capital appreciation; and
- lower overall volatility of Portfolio returns than would be experienced by owning a portfolio of the securities of the issuers that comprise the S&P/TSX Financials Index.
The Company will not have a fixed distribution, but intends to set periodic distribution targets. Based on the Manager's current estimates, the initial distribution target for the Company is expected to be $0.175 per quarter ($0.70 per annum to yield 7% on the subscription price of $10 per Share).
First Asset is a Canadian wealth management company that manages and administers in excess of $2.4 billion in assets as of January 24, 2011.
The syndicate of agents for this offering is being led by CIBC World Markets Inc., National Bank Financial Inc. and RBC Capital Markets, and includes BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Mackie Research Capital Corporation and Macquarie Private Wealth Inc.
For further information, please call Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.
"S&P/TSX Composite Index" and "S&P/TSX Capped Financials Sector Index" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by the Company. The Company is not sponsored, endorsed, sold or promoted by Standard & Poor's ("S&P") or its third party licensors.