TORONTO (March 8, 2021) - CI Global Asset Management ("CI GAM") today announced further details of the previously announced proposal for the merger (the "Merger") of CI Galaxy Bitcoin Fund (TSX: BTCG), a closed-end investment fund, into CI Galaxy Bitcoin ETF (TSX: BTCX), an exchange-traded fund (the "Continuing ETF") to be listed on the Toronto Stock Exchange ("TSX") as of tomorrow, March 9, 2021.
If approved, unitholders of BTCG will receive the equivalent dollar value of units in the ETF US$ Series of the Continuing ETF upon completion of the Merger. The proposed Merger is expected to take place on a taxable basis, would be considered a disposition for tax purposes and may have tax consequences for unitholders of BTCG.
CI GAM believes the Merger to be in the best interest of investors as it will result in investors holding units of an ETF, which offers increased liquidity through continuous distribution. CI GAM expects that BTCX, the Continuing ETF, will be an efficient way to access this asset class and will permit BTCG investors to benefit from the potential economies of scale of an ETF. The costs and expenses associated with the Merger are being borne by CI GAM and not by the funds. As previously announced, CI GAM will be lowering the management fee of BTCG to match that of BTCX once the Continuing ETF is listed on the TSX.
Pursuant to National Instrument 81-102 Investment Funds, unitholders of BTCG are required to approve the Merger. In addition, the Merger will require regulatory approval. A unitholder meeting will be held on April 26, 2021 and, if required, an adjourned meeting will be held on May 6, 2021. Holders of record of BTCG units on March 17, 2021 will be entitled to receive notice and vote at the meeting.
The Notice and Access Document which details the Merger will be mailed to unitholders and the Management Information Circular will be available on www.sedar.com and www.firstasset.com on or about March 24, 2021. Pending the required unitholder and regulatory approvals, the Merger will be implemented on or about May 7, 2021. Unitholders of BTCG will have the opportunity to redeem their units prior to the Merger if they do not wish to participate in the Continuing ETF.
The Independent Review Committee of BTCG has reviewed the Merger with respect to the potential conflict of interest matters and provided its positive recommendation, having determined that the Merger achieves a fair and reasonable result for BTCG.
About CI Global Asset Management
CI Global Asset Management is one of Canada's largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately C$231.8 billion in total assets as at January 31, 2021.
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.
This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.
Certain statements in this document are forward-looking. Forward-looking statements ("FLS") are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as "may," "will," "should," "could," "expect," "anticipate," "intend," "plan," "believe," or "estimate," or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management believes to be reasonable assumptions, CI Global Asset Management cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.
CI Global Asset Management is a registered business name of CI Investments Inc.
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Murray Oxby Vice-President, Corporate Communications CI Global Asset Management 416-681-3254 firstname.lastname@example.org