TORONTO, Jan. 08, 2025 (GLOBE NEWSWIRE) -- (TSX: NPS, NPS.PR.A) – Canadian Large Cap Leaders Split Corp. (the “Company”) is pleased to announce its intention to effect a stock split of its Class A shares (the “Share Split”) as well as a concurrent private placement of its preferred shares (the “Private Placement”). The Company intends to announce the final number of Class A shares and preferred shares expected to be outstanding following the Share Split and Private Placement by way of press release on or about January 22, 2025.
It is the Company’s intention that Class A shareholders of record on or about Tuesday, February 4, 2025 will receive additional Class A shares pursuant to the Share Split. The number of preferred shares offered in the Private Placement will be an amount such that following the Share Split there will be an approximate equal number of Class A and preferred shares outstanding. The Company expects that the Share Split and the Private Placement will result in an approximately 14% increase in the number of outstanding Class A shares and preferred shares. The Share Split and the Private Placement are subject to regulatory approval as well as the approval of the Toronto Stock Exchange (the “TSX”).
Following the Share Split, Class A shareholders will continue to receive the currently targeted monthly distribution of $0.125 per Class A share, although Class A shares per investor should reflect a balance which is approximately 14% higher than prior to the Share Split. As such, existing Class A shareholders are expected to be provided with an effective increase in monthly cash distributions equal to approximately 14%. The Company provides a distribution reinvestment plan, on a commission-free basis, for Class A shareholders that wish to reinvest distributions and realize the benefits of compound growth.
Following the completion of the Share Split and the Private Placement, the preferred shares are expected to have downside protection of approximately 58%.(1)
The Company invests, on an approximately equally-weighted basis, in a portfolio comprised primarily of equity securities of Canadian Dividend Growth Companies (as defined below), selected by the portfolio manager, that at the time of investment and immediately following each periodic reconstitution and rebalancing: (i) are listed on a Canadian exchange; (ii) pay a dividend; (iii) generally have a market capitalization of at least $10 billion; (iv) have options in respect of its equity securities that, in the opinion of the portfolio manager, are sufficiently liquid to permit the portfolio manager to write options in respect of such securities; and (v) have a history of dividend growth or, in the portfolio manager’s view have high potential for future dividend growth (“Canadian Dividend Growth Companies”).
The investment objectives for the Class A shares are to provide their holders with regular monthly non-cumulative cash distributions targeted to be $0.125 per Class A share representing a yield on the original initial public offering issue price of $15.00 per Class A share of 10% per annum and to provide holders with the opportunity for growth in the net asset value per Class A share.
The investment objectives for the preferred shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.1875 per preferred share ($0.75 per annum or 7.5% per annum on the original initial public offering issue price of $10.00 per preferred share), and to return the original issue price of $10.00 to holders upon maturity.
AboutNinepoint Partners LP
Ninepoint Partners LP is the Manager, Portfolio Manager and Promoter of the Company and provides all administrative services required by the Company. Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets.
For more information on Ninepoint Partners LP, please visit www.ninepoint.com or please contact us at 416.362.7172 or 1.888.362.7172 or invest@ninepoint.com.
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There are ongoing fees and expenses associated with owning shares of an investment fund.An investment fund must prepare disclosure documents thatcontain key information about the fund.You can find more detailed information about the Company in the public filings available at www.sedarplus.ca.Investmentfunds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-lookinginformation may relate to mattersdisclosed in this document and to other matters identified in public filings relating to the Company, to the future outlook of theCompany and anticipated events or results and may include statements regarding the future financial performance of the Company. In some cases, forward-lookinginformation can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”,“potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-lookinginformation.Investors should not place undue reliance on forward-looking statements.These forward-looking statements are made as of the date hereofand we assume no obligation to update or revise them to reflect new events or circumstances.
The securities have notbeen registered underthe U.S. SecuritiesAct of 1933, asamended, and may notbe offered orsold inthe UnitedStatesabsentregistration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of anoffer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
