Press release from CNW Group
Uranium Focused Energy Fund Accelerated Redemption and Merger into MBN Corporation
Monday, June 24, 2013
Uranium Focused Energy Fund Accelerated Redemption and Merger into MBN Corporation17:27 EDT Monday, June 24, 2013
CALGARY, June 24, 2013 /CNW/ -
Middlefield is pleased to announce that, in light of the approaching termination of Uranium Focused Energy Fund ("Uranium") which is scheduled to occur at the end of this year, the annual redemption right of Uranium unitholders has been accelerated to July 31, 2013. Given the relative illiquidity of the fund's units on the Toronto Stock Exchange ("TSX"), the advancement of Uranium's 2013 redemption date is intended to accommodate those unitholders seeking to divest of their investment in the fund. In order to provide unitholders with sufficient time to participate in the July 31st redemption, the required notice period in respect of this year's redemption has been shortened. Accordingly, Uranium unitholders who choose to participate in the July 31, 2013 redemption must provide notice and surrender their units of Uranium by 5:00 pm (Toronto time) on July 24, 2013. Surrendered units will be redeemed in accordance with Uranium's declaration of trust and redemption proceeds will be paid by the fund on or about August 22, 2013.
Uranium unitholders who wish to maintain exposure to the uranium sector have the option of redeeming their units of Uranium and acquiring shares of Uranium Focused Metals Class, an open-end mutual fund managed by Middlefield which has a similar investment portfolio to Uranium. Unitholders interested in investing in Uranium Focused Metals Class should contact their investment advisor.
Alternatively, for those unitholders that choose not to redeem their units and wish to maintain an investment in an actively managed, TSX-listed investment company with similar investment objectives, it is Middlefield's intention to merge Uranium into MBN Corporation ("MBN") effective on or about August 28, 2013, with MBN being the continuing entity. The merger is expected to provide investors with the opportunity to hold shares of an investment company that offers a larger market capitalization, increased trading liquidity and lower operating costs on a per share basis. All costs and expenses associated with the merger will be borne by the manager and not the funds.
Completion of the merger is expected to take place on or about August 28, 2013 (the date of completion being the "Effective Date") and is subject to satisfying all regulatory requirements and customary closing conditions. The merger will be effected at an exchange ratio calculated as the net asset value per unit of Uranium divided by the net asset value per share of MBN, determined as at the close of trading on the TSX on the business day immediately prior to the Effective Date.
Uranium units and MBN shares trade under the symbols UF.UN and MBN, respectively, on the TSX.
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to: the proposed timing of the merger and expected completion thereof; the expected benefits of the merger; and the funds that are proposed to be merged. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of each fund. There are no assurances the funds can fulfill such forward-looking statements and the funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the funds, some of which are beyond the control of the funds.
SOURCE: Uranium Focused Energy Fund
For further information:
on MBN, including its annual report, which outlines MBN's investment strategy, please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868.