TORONTO, June 08, 2018 (GLOBE NEWSWIRE) -- Purpose Investments Inc. (“Purpose”) is pleased to announce the next phase of enhancements to its investment fund platform. Subject to all required securityholder and regulatory approvals, Purpose is proposing to implement the following fund mergers (the “Mergers” and each a “Merger”):
| TERMINATING FUND | CONTINUING FUND | |
| Redwood Unconstrained Bond Fund | → | Redwood Floating Rate Income Fund |
| Redwood Unconstrained Bond Class | → | Redwood Floating Rate Income Fund |
| Redwood Global Infrastructure Income Fund | → | Purpose Diversified Real Asset Fund |
| Limited Duration Investment Grade Preferred Securities Fund | → | Purpose US Preferred Share Fund |
If all necessary approvals are obtained, it is expected that the Mergers will be effective on or about August 27, 2018 (the “Effective Date”).
In accordance with applicable legal requirements, securityholders of each of the Terminating Funds and of Redwood Floating Rate Income Fund and Purpose Diversified Real Asset Fund will be required to approve their Mergers. Such securityholders will receive a Notice of Meeting and a Management Information Circular (the “Meeting Materials”) in accordance with applicable securities laws. The required securityholder approvals will be sought at special meetings to be held on or about August 16, 2018 for securityholders of record as of July 3, 2018.
Redwood Global Infrastructure Income Fund and Limited Duration Investment Grade Preferred Securities Fund are each Terminating Funds structured as closed-end funds (the “Closed-End Terminating Funds”) whose units are listed on the Toronto Stock Exchange (“TSX”). Should the Mergers involving the Closed-End Terminating Funds be approved, it is expected that their units will be delisted from the TSX at the close of business on the day prior to the Effective Date (each a “De-Listing Date”), subject to the approval of the TSX and in accordance with any conditions of such approval.
Subject to the approval of the TSX, it is anticipated that the name of Redwood Floating Rate Income Fund will change to “Purpose Floating Rate Income Fund” prior to the mailing of the Meeting Materials.
Should a Merger receive all required approvals, the right of securityholders of a Terminating Fund, other than a Closed-End Terminating Fund, to purchase or switch their securities will cease as of the close of business two (2) days prior to the Effective Date. Securityholders of a Terminating Fund, other than a Closed-End Terminating Fund, will have the right to redeem their securities up to the close of business on the Effective Date. Securityholders of the Closed-End Terminating Funds will be able to trade their units on the TSX up to the close of business on the De-Listing Date.
Following a Merger, pre-authorized chequing plans, systematic withdrawal plans and any other optional service that had been established with respect to a Terminating Fund will be re-established with respect to its Continuing Fund.
About Purpose Investments
Purpose Investments is an asset management company with approximately $5.5 billion under management. Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products. 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:
Nancy Turner
Purpose Investments Inc.
Tel: (877) 789-1517
Email: info@purposeinvest.com
This press release is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. This press release is not for dissemination in the United States or for distribution to U.S. news wire services.
