TORONTO, Sept. 9 /CNW/ - TDK (1999) Flow-Through Limited Partnership announces that it has filed a preliminary prospectus with the securities commissions of all 10 Canadian provinces for an initial public offering of partnership Units. The Partnership will focus its investments on Canadian oil and gas companies that have experienced and capable management, strong exploration programs and good growth potential. The Partnership's maximum offering size is $50 million. The minimum investment amount for an individual investor is $2,500.
The Partnership will endeavour to invest all net proceeds of the offering in flow-through shares prior to December 31, 1999, thereby allowing investors to deduct 100% of the cost of those shares from 1999 income.
Wayne Deans, the lead equity manager of Deans Knight Capital Management Ltd., will be the Partnership's lead portfolio manager. Mr. Deans has extensive investment experience in the resource sector and invests in numerous resource companies on behalf of Deans Knight clients. Deans Knight provides investment advisory and portfolio management services to a wide range of clients including mutual funds, pension funds, insurance funds and private clients. TDK (1999) General Partner Inc., a wholly-owned subsidiary of Triax Management Holdings Ltd., is the General Partner of the Partnership.
The Partnership will terminate on or about June 30, 2001. Prior to that date, Unitholders will be asked to approve a proposal to transfer the assets or Units of the Partnership to an open-ended mutual fund on a tax-deferred basis.
This offering follows TDK (1998) Flow-Through Limited Partnership which was introduced in October 1998. The portfolio of TDK (1998) has focused mainly on Canadian oil and gas issuers and has posted a 8.9% return since inception ($9.05 opening NAV on December 17, 1998; $9.86 NAV on August 31, 1999). TDK (1998) Flow-Through Limited Partnership is also managed by Wayne Deans of Deans Knight Capital Management Ltd.
CIBC World Markets Inc. is the lead agent for the Partnership. The investment syndicate also includes: Merrill Lynch Canada Inc., Nesbitt Burns Inc., RBC Dominion Securities Inc., Scotia McLeod Inc., Levesque Beaubien Geoffrion Inc., TD Securities Inc. and HSBC Securities (Canada) Inc.
The offering is scheduled to close in early October 1999.