TORONTO, ONTARIO--(Marketwired - Jan. 13, 2015) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Harvest Portfolios Group Inc. (the "Manager") is pleased to announce that Healthcare Leaders Income Fund (the "Fund") (TSX:HHL.UN) issued an additional 259,149 Units of the Fund today pursuant to the exercise of the over-allotment option by the syndicate of agents. Total gross proceeds raised by the Fund in its initial public offering were $97,591,490. The Units trade on the Toronto Stock Exchange under the symbol HHL.UN.
The Fund's investment objectives are to provide Unitholders with (i) the opportunity for capital appreciation; (ii) monthly cash distributions; and (iii) lower overall volatility of Portfolio returns than would otherwise be experienced by owning Equity Securities of Healthcare Leaders directly.
The Fund invests in an equally-weighted Portfolio of Equity Securities of 20 Healthcare Issuers, which are issuers listed on a North American stock exchange that are included in the health care sector of the Global Industry Classification Standards and whose underlying business includes, but is not limited to, the provision of healthcare goods and services, including manufacturing and distributing healthcare products, equipment, supplies and technologies, producing and marketing of pharmaceuticals and biotechnology products, and/or engaging in research and development that (i) have a market capitalization of at least US$5 billion, and (ii) have options in respect of their Equity Securities listed on a recognized options exchange.
In order to seek to generate additional returns, Highstreet Asset Management Inc. (the "Investment Manager" or "Highstreet") may sell call options each month on up to 33% of any of the Equity Securities held in the Portfolio.
Highstreet is responsible for the execution of the Fund's overall investment strategy, including managing the composition of the Portfolio.
The indicative distribution amount is $0.0583 per Unit per month ($0.70 per annum) representing an annual cash distribution of 7% based on the per Unit issue price. The initial cash distribution is anticipated to be payable on or before February 15, 2015 to Unitholders of record on January 30, 2015.
The syndicate of agents for the Offering was co-led by BMO Capital Markets, CIBC and Scotiabank, and includes National Bank Financial Inc., Canaccord Genuity Corp., Global Securities Corporation, GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Dundee Securities Ltd., Industrial Alliance Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated (collectively, the "Agents").
Borden Ladner Gervais LLP acted as counsel for the Fund and the Manager and Blake, Cassels & Graydon LLP acted as counsel for the Agents.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund, the Manager and/or the Investment Manager. The forward-looking statements are not historical facts but reflect the Fund's, the Manager's, and/or the Investment Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Fund, the Manager, and/or the Investment Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Fund, the Manager and/or the Investment Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
All capitalized terms noted herein but not defined are as defined in the Fund's prospectus dated November 19, 2014.
For additional information or a copy of the Prospectus, please contact your registered financial advisor.