Rights Issue - FTN I agree with Rainham - it should boost NAV:
PR - Aug 12, 2014 - Financial 15 Split Corp. (the "Company") announces that it will issue Rights to all Class A Shareholders thereby allowing existing shareholders to increase their investment in the Company. Each Class A Shareholder will be entitled to receive one Right for each Class A Share held as of the record date of August 25, 2014. Six Rights will entitle the holder to purchase a Unit consisting of one Class A Share at $10.25 and one Preferred Share at $10.00 for the total subscription price of $20.25. The Rights are exercisable at any time once issued and will expire at 5:00 p.m. (EST) on September 19, 2014.
The net proceeds from the subscription of Units will be used to acquire additional securities in accordance with the Company's investment objectives. The exercise price is consistent with current trading prices and accretive to the most recently published net asset value per Unit. The offering is expected to increase the trading liquidity of the Company and reduce the management expense ratio.
Both the Preferred Shares and Class A Shares trade on the Toronto Stock Exchange (the "TSX") under the symbol "FTN.PR.A" and "FTN" respectively. The Rights will be listed and will trade on the TSX until 12:00 noon (EST) on September 19, 2014. The Rights will be eligible for exercise on and following August 26, 2014.