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PIC.PR.A Premium Income Corporation

14.40
0.00 (0.00%)
04 Jun 2024 - Closed
Delayed by 15 minutes
Name Symbol Market Type
Premium Income Corporation TSX:PIC.PR.A Toronto Preference Share
  Price Change % Change Price Bid Price Offer Price High Price Low Price Open Price Traded Last Trade
  0.00 0.00% 14.40 14.40 14.45 14.41 14.40 14.41 5,700 20:56:41

Premium Income Corporation Files Final Prospectus for Rights Offering

05/11/2012 2:33pm

Marketwired Canada


Premium Income Corporation (TSX:PIC.A)(TSX:PIC.PR.A) (the "Fund") is pleased to
announce that it has filed a final short form prospectus relating to an offering
of rights ("Rights") to holders ("Shareholders") of its class A shares ("Class A
Shares") and preferred shares ("Preferred Shares"). Each Shareholder of record
on November 13, 2012 will receive one Right for each Class A Share or Preferred
Share held. 


Two Rights will entitle the holder to acquire one Class A Share and one
Preferred Share upon payment of the subscription price of $20.88. The Toronto
Stock Exchange has conditionally approved the listing of the Rights under the
symbol PIC.RT and the Class A Shares and the Preferred Shares issuable upon the
exercise thereof. It is expected that the Rights will commence trading on
November 9, 2012 and will remain trading until noon (EST) on the expiry date of
December 11, 2012. 


The Fund invests in a portfolio consisting principally of common shares of Bank
of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank
of Canada and The Toronto-Dominion Bank (the "Banks"). To generate additional
returns above the dividend income earned on the Fund's portfolio, the Fund may
from time to time write covered call options in respect of some or all of the
common shares in the Fund's portfolio. The Fund may also, from time to time,
write cash-covered put options in respect of securities in which the Fund is
permitted to invest. The manager and investment manager of the Fund is
Strathbridge Asset Management Inc. 


The exercise of Rights by holders will provide the Fund with additional capital
that can be used to take advantage of attractive investment opportunities in the
Banks and is also expected to increase the trading liquidity of the Class A
Shares and the Preferred Shares and to reduce the management expense ratio of
the Fund. The Manager believes that current markets offer an excellent
opportunity for Shareholders to increase their exposure to the Fund and its
portfolio of the Banks. For the 4th consecutive year, Canadian banks were ranked
#1 by the Geneva based World Economic Forum in the "Soundness of Banks"
category. All 5 banks raised their dividend in the third quarter by 3-7%.
Several banks also announced normal course issuer bids to repurchase shares. 


Consequently, the Fund believes this is an opportune time to issue Rights to all
Shareholders of the Fund to allow Shareholders to acquire additional Shares of
the Fund. 


For further information, please contact Investor Relations at 416.681.3966, toll
free at 1.800.725.7172 or visit www.strathbridge.com.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Strathbridge Asset Management Inc.
David Roode
President, Fund Services
416.681.3966 or 1.800.725.7172


Strathbridge Asset Management Inc.
121 King Street West, Suite 2600
Toronto, Ontario, M5H 3T9
416.681.3966 or 1.800.725.7172
info@strathbridge.com
www.strathbridge.com

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