FIG.PR.A: Mass Retraction Prior to Warrant Expiry

Faircourt Asset Management, on behalf of Faircourt Income & Growth Split Trust, has announced:

that it has received requests for redemptions totaling approximately 6.4 million Units of the Trust. Payment will be made on July 22nd, 2010 based on the Net Asset Value per Trust Unit calculated using a three day volume weighted average price for exchange-traded securities held by the Trust, determined as of June 30, 2010 less costs of funding the redemption, including commissions.

The Trust currently has approximately 4.9 million Warrants outstanding, at an exercise price of $4.00 per unit while the current Net Asset Value of the Trust as at the close of business June 2nd is $4.57 or $4.34 on fully diluted basis. The Warrants will expire on June 25th, 2010. Holders of Warrants desiring to exercise Warrants and purchase Units should ensure that subscriptions and payment in full of the Subscription Price are received by the Warrant Agent prior to 4:01 p.m. (Toronto time) on June 25, 2010. Warrants submitted to the Warrant Agent for exercise on June 25, 2010 will be exercised in accordance with the practices and procedures of the Warrant Agent and the applicable CDS Participants

The fund, advised by Acuity Investment Management Inc., is most notable for having the Capital Units underperform the benchmark by over 20% annually in the five years to 2009-12-31. There were 9,806,610 units outstanding as of year-end, so this announcement reflects a mass churning by unitholders – assuming they exercise their warrants, which are in-the-money. Otherwise, of course, it’s just a plain mass-retraction.

FIG.PR.A was last mentioned on PrefBlog when the Capital Units’ dividend was reinstated. FIG.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

One Response to “FIG.PR.A: Mass Retraction Prior to Warrant Expiry”

  1. […] was last mentioned on PrefBlog when the mass retraction of 6.4-million units was […]

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