..... I am repeating previous posts:


On 12 Jan 22 there will be 3 distributions: the usual monthly distribution, a special cash dist of 10 c per unit, and a special non cash dist of 63c per unit. The latter will show up on the T3 form issued by your broker if HR.un held in a non registered acct. Happy New Year to all!


In simple terms - as requested by Eppy:

For pre-existing holders of HR.un units, the following will happen:
  1. The usual HR.un monthly cash distribution will be paid on 7 Dec.
  2. The usual HR.un monthly cash distribution will be paid on 12 January - presumably the last distribution at the current rate since there will be changes post spin-off of PMZ.un
  3. A special cash distribution of 10c per HR.un unit will be paid on 12 January
  4. A special non-cash distribution of 63c per HR.un unit will also be "paid" on 12 January. This non-cash re-invested distribution will result in an increase in the unit-holder's taxable income for the 2021 tax year (unless HR.un is held in a registered account in which case it is basically inconsequential). We have been told that this SD will be mostly if not exclusively capital gains. The full amount of the non-cash SD should be added to your total ACB for the HR.un holding - in order to reduce any capital gains (or increase capital losses upon the sale of the position).
  5. Either in late December or early January - and dependent upon a successful outcome of the unit-holder vote on 13 Dec. - HR.un will spin off PMZ.un with a 4:1 consolidation. Thus, if you are currently holding 1,000 units of HR.un, following the spin off you will be holding 1,000 units of HR.un and 250 units of PMZ.un. The ACB of HR.un will be reduced by the initial ACB of PMZ.un. This spin off will be a non-taxable event.
  6. Starting in February, there should be a pay date for both entities since you will be receiving distributions for both HR.un and PMZ.un with a combined total that is 4.3% greater than the current HR.un distribution.

A simplified explanation for a not-so-simple series of corporate actions. To reiterate, holders of HR.un in a registered account will have a much simpler time of it. In non-registered accounts, there will be a bit of book-keeping work involved!