TORONTO, June 12, 2020 (GLOBE NEWSWIRE) -- Purpose Investments Inc. (“Purpose Investments” or “Purpose”), on behalf of Big Banc Split Corp. (the “Company”), is pleased to announce the exchange ratios for the exchange option (the “Exchange Option”) with respect to its initial public offering of class A shares (the “Class A Shares”) and preferred shares (the “Preferred Shares”) at a price of $10.00 per Preferred Share and $10.00 per Class A Share. Under the Exchange Option, prospective purchasers can purchase Class A Shares or units (consisting of one Class A Share and one Preferred Share) (each, a “Unit”) of the Company by an exchange of freely-tradable listed securities of the issuers listed below (the “Exchange Eligible Securities”). The Exchange Option deadline was 5:00 p.m. (Toronto time) on June 12, 2020.
The following table indicates the name, CUSIP number, adjusted volume weighted average trading price (“Adjusted VWAP”), exchange ratio per Class A Share and exchange ratio per Unit for each of the Exchange Eligible Securities (the “Exchange Ratios”) as calculated in the manner described in the Company’s prospectus dated May 15, 2020. The Adjusted VWAP and Exchange Ratios are rounded to six decimal places. The Company will not issue fractional Class A Shares or Units.
|Company Name||Ticker||CUSIP||Adjusted VWAP||Exchange Ratio Per Class A Share||Exchange Ratio Per Unit|
|Bank of Montreal||BMO||063671101||$75.224396||0.132935||0.265871|
|Canadian Imperial Bank of Commerce||CM||136069101||$96.337369||0.103801||0.207603|
|National Bank of Canada||NA||633067103||$62.888816||0.159010||0.318021|
|Royal Bank of Canada||RY||780087102||$93.277950||0.107206||0.214412|
|The Bank of Nova Scotia||BNS||064149107||$59.534514||0.167969||0.335939|
|The Toronto-Dominion Bank||TD||891160509||$63.337078||0.157885||0.315770|
|Canadian Western Bank||CWB||13677F101||$25.573714||0.391026||0.782053|
|Vanguard FTSE Canada All Cap Index ETF||VCN||92205P104||$31.470109||0.317761||0.635523|
|iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||CDZ||46433F106||$22.993892||0.434898||0.869796|
|iShares Canadian Select Dividend Index ETF||XDV||46430W102||$21.613000||0.462684||0.925368|
|iShares S&P/TSX Capped Financials Index ETF||XFN||46431B107||$33.331598||0.300015||0.600031|
|iShares Core S&P/TSX Capped Composite Index ETF||XIC||46430J101||$24.979964||0.400320||0.800641|
|iShares S&P/TSX 60 Index ETF||XIU||46428D108||$23.688252||0.422150||0.844300|
|BMO S&P/TSX Capped Composite Index ETF||ZCN||05574G109||$21.185789||0.472014||0.944029|
|BMO Equal Weight Banks Index ETF||ZEB||055685101||$24.570225||0.406996||0.813993|
|BMO Covered Call Canadian Banks ETF||ZWB||05560U104||$15.320357||0.652726||1.305452|
|BMO Low Volatility CAD Equity ETF||ZLB||05573T102||$31.179692||0.320721||0.641443|
|BMO Laddered Preferred Share Index ETF||ZPR||05581T102||$8.259773||1.210686||2.421373|
|iShares S&P/TSX Canadian Preferred Share Index ETF||CPD||46431G205||$10.644333||0.939467||1.878934|
|RBC Canadian Preferred Share ETF||RPF||74934A103||$17.069332||0.585846||1.171692|
|Dynamic Active Preferred Shares ETF||DXP||26800U100||$16.176058||0.618197||1.236395|
|iShares S&P/TSX North American Preferred Stock Index ETF CAD-Hedged||XPF||46431J100||$15.236080||0.656336||1.312673|
The Toronto Stock Exchange (the “TSX”) has conditionally approved the listing of the Class A Shares and the Preferred Shares, subject to the Company fulfilling all of the requirements of the TSX. Trading under the symbols BNK and BNK.PR.A is expected to commence on the anticipated closing date of the Offering, being Thursday, June 25, 2020.
The Company will invest on an approximately equally-weighted basis in a portfolio (the “Portfolio”) of equity securities (the “Portfolio Shares”) of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. In order to seek to generate additional returns and enhance the Portfolio’s income, the Manager may write covered call options and cash covered put options in respect of some or all of the Portfolio Shares held in the Portfolio.
The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the “Maturity Date”) and to return the original issue price of $10.00 to holders on the Maturity Date.
The investment objectives for the Class A Shares are to provide their holders with regular monthly non-cumulative cash distributions initially in the amount of $0.067 per Class A Share, representing a yield on the issue price of the Class A Shares of 8.0% per annum and to provide holders with the opportunity for growth in the net asset value per Class A Share.
In order to seek to generate additional returns and enhance the Portfolio’s income, the manager may write covered call options and cash covered put options in respect of some or all of the Portfolio Shares held in the Portfolio. The manager expects that initially covered call options will be written on up to approximately 30% of the Portfolio Shares in the Portfolio.
Purpose will act as the manager, portfolio manager and promoter of the Company, and will provide all administrative services required by the Company.
The syndicate of agents for the Offering is being led by National Bank Financial Inc. and also includes CIBC Capital Markets, BMO Capital Markets, Canaccord Genuity Corp., RBC Capital Markets, Scotiabank, TD Securities Inc., Richardson GMP Limited, Industrial Alliance Securities Inc., Echelon Wealth Partners Inc., Raymond James Ltd., Desjardins Securities Inc., Hampton Securities Limited, Haywood Securities Inc., Mackie Research Capital Corporation, Manulife Securities Incorporated and PI Financial Corp.
About Purpose Investments
Purpose Investments is an asset management company with over $8-billion under management. Purpose Investments is built around the core values of risk management, quality investment strategies, transparency, accessibility and sustainability. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.
For further information please contact:
Purpose Investments Inc.
Tel: (877) 789-1517
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from any of the agents and is also available at www.sedar.com. There will not be any sale or acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.