LFE retraction of shares..Could be some delay figuring the retraction of class A shares.
The Toronto Stock Exchange reports that Canadian Life Companies Split Corp.'s board of directors has approved an extension of the maturity date of the Class A shares and 2012 preferred shares of the fund for an additional six-year term to Dec. 1, 2030. According to the TSX, holders of Class A shares and 2012 preferred shares of the fund can elect to have their shares retracted for a cash amount equal to:
- Class A shares: the greater of (i) the net asset value per unit (means a notional unit consisting of one Class A share and one 2012 preferred share) on the date of retraction minus the sum of $10, plus any accrued and unpaid distributions on the 2012 preferred shares, and (ii) nil;
- 2012 preferred shares: the lesser of (i) $10, plus any accrued and unpaid distributions thereon, and (ii) the net asset value of the fund on that date divided by the total number of 2012 preferred shares then outstanding.
The election deadline is 5 p.m. Toronto time on Nov. 1, 2024. Trades from 9:30 a.m. Toronto time to 12 p.m. Toronto time on Nov. 1, 2024, will settle for cash on the same day.
As the Class A shares and 2012 preferred shares of the fund were issued in book-entry-only form, CDS Clearing and Depository Services Inc. is the only registered holder of Class A shares and 2012 preferred shares. Holders should contact their broker, dealer, bank trust company or other nominee as soon as possible to confirm their deadline and for instructions on how to exercise the special retraction right, if they desire to do so. Holders who do not elect to exercise their special retraction right prior to the deadline set by their broker, dealer, bank, trust company or other nominee will retain their investment in the fund.
The TSX notes that in order to maintain the same number of Class A shares and 2012 preferred shares outstanding, the fund may redeem the Class A shares or 2012 preferred shares on a pro rata basis to the extent that more 2012 preferred shares than Class A shares or more Class A shares than 2012 preferred shares, as the case may be, are retracted under the special retraction right. The TSX will issue a further bulletin if the fund will redeem Class A shares or 2012 preferred shares, as the case may be.