Uranium Focused FundUranium Focused Energy Fund - Initial Public Offering
Tuesday January 30, 6:01 pm ET
TORONTO, Jan. 30 /CNW/ - Middlefield Group, on behalf of Uranium Focused Energy Fund (the "Fund"), is pleased to announce that it has filed a preliminary prospectus in relation to the initial public offering of units of the Fund.
The Fund will be advised by Middlefield Capital Corporation (the "Advisor") and Global Fuel Solutions ("GlobalFuel"), an independent uranium industry consultant based in Los Altos, California, which has been engaged to provide analysis and opinion regarding uranium market supply-demand fundamentals and associated pricing implications. Mr. Clark M. Beyer, GlobalFuel's principal, has over 20 years experience in trading, marketing and consulting in the international markets for uranium and nuclear fuel. Mr. Beyer will be the individual primarily involved in providing services on behalf of GlobalFuel.
The Fund has been designed to capitalize on the view of the Advisor that the uranium sector will continue to provide attractive opportunities for investment over the next several years. The Advisor expects that primary uranium supply will continue to fall short of global demand over the life of the Fund due predominantly to limitations in the production capacity of existing mines, while secondary uranium supplies, such as inventories, stockpiles and decommissioned nuclear weapons, which historically have bridged the global uranium supply shortfall, are expected to steadily decline. In light of the significant capital and time requirements associated with the development of new uranium mines, the Advisor expects uranium prices to remain strong over the life of the Fund, which will terminate on December 31, 2013.
The Fund's investment objectives are to achieve capital appreciation of the investment portfolio and to pay quarterly distributions to unitholders. The initial indicative yield is 5% per annum based upon the original issue price of $10.00 per unit. In order to achieve the Fund's investment objectives, the Portfolio will be focused on the securities of issuers that operate in or have exposure to the uranium sector, supplemented with the securities of other energy related issuers that operate in or have exposure to the energy sector. The Advisor expects that the weighting in uranium related securities will comprise approximately 75% of the value of the initial Portfolio and will include such companies as Cameco Corp., Paladin Resources Ltd., Denison Mines Corp. and sxr Uranium One Inc. The Portfolio will be focused on securities which, in the view of the Advisor, are of high quality issuers that exhibit strong fundamentals and superior prospects for exploration and development, and offer the potential to benefit from the favourable supply-demand fundamentals in the uranium sector.
Individuals investing in Uranium Focused Energy Fund will have the option of paying for units by exchanging securities of certain specified issuers, subject to the terms and conditions set forth in the prospectus. By exchanging securities for units of Uranium Focused Energy Fund, investors are able to achieve the benefits of diversification and professional management.
The syndicate of agents is being co-led by CIBC World Markets Inc. and RBC Capital Markets, and includes Scotia Capital Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., Blackmont Capital Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Inc., Desjardins Securities Inc., Berkshire Securities Inc., Middlefield Capital Corporation and Research Capital Corporation.
A preliminary prospectus relating to these securities has been filed with securities commissions or similar authorities in all of the provinces of Canada and the Yukon Territory but has not yet become final for the purpose of a distribution to the public. This material shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any province of Canada or the Yukon Territory prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such province or territory.
For further information
please visit our website at www.middlefield.com or contact Nancy Tham, Senior Vice-President, at (416) 847-5349