NewGrowth Corp. Declares Quarterly Dividends and Confirms Extension of Company to June 2019

CNW Group

TORONTO , June 10, 2014 /CNW/ - The Board of Directors of NewGrowth Corp. (the "Company") has declared today ordinary dividends of $0.2055 per Preferred Share and $0.2625 per Capital Share payable on June 26, 2014 to holders of record at the close of business on June 24, 2014 .

Holders of the Preferred Shares are entitled to receive quarterly fixed cumulative dividends equal to $0.2055 per Preferred Share. The Company's Capital Share dividend policy is to pay holders of Capital Shares quarterly dividends in an amount equal to the dividends received by the Company on the underlying portfolio securities minus the dividends payable on the Preferred Shares and all administrative and operating expenses provided the net asset value per Unit at the time of declaration, after giving effect to the dividend, would be greater than the original issue price of the Preferred Shares.

The Company announced on April 21, 2014 that the final condition required to extend the term of the Company for an additional five years to June 26, 2019 had been met. The Company's Class B preferred shares, Series 2 (the "Series 2 Preferred Shares") will be redeemed by the Company on June 26, 2014 in accordance with their redemption provisions at a price per share equal to the lesser of $13.70 and the net asset value per Unit (currently, $54.66 ). In order to maintain the leveraged "split share" structure of the Company, the Company intends to create and issue a third series of Class B preferred shares (the "Series 3 Preferred Shares"), which are expected to be issued immediately following this redemption. In addition, the Company may also undertake a concurrent public offering of additional Class A Capital Shares at the same time the Series 3 Preferred Shares are offered.

NewGrowth Corp. is a mutual fund corporation whose investment portfolio consists of publicly-listed securities of selected Canadian chartered banks, telecommunication, pipeline and utility issuers.  The Capital Shares and Preferred Shares of NewGrowth Corp. are listed for trading on The Toronto Stock Exchange under the symbols NEW.A and NEW.PR.C respectively.

SOURCE NewGrowth Corp.

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Contact:


Investor Relations
NewGrowth Corp.
(416) 862-3931
E-mail: mc.newgrowth@scotiabank.com
Web site: www.scotiamanagedcompanies.com

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