FCN.PR.A / FCF.PR.A / FCI.PR.A / FIG.PR.A Merger Reflected on TSX

As noted earlier, all approvals for this merger were received. The merger has now been reflected on the TSX and FIG.PR.A is the continuing symbol. reorgDataEntries have been processed for each of the exchanges effected:

6,700 shares of FIG.PR.A traded today in a range of $10.01-15. The closing quotation was $10.05-10, 20×50. The TSX is now reporting 17,464,308 shares of this issue outstanding – quite a nice size for an interest bearing split share.

Update, 2026-6-26: I have recovered and stored the Material Change Report:

On January 16, 2007, the holders of preferred securities of the Funds considered and voted in favour of an extraordinary resolution authorizing the merger of the Funds to create a single continuing trust (the “Continuing Trust”). Preferred Securityholders of the Funds also considered and voted in favour of a resolution authorizing the proposed exchange of preferred securities of each of Income Split, Split Five and Split Seven for preferred securities of Income & Growth Split (which will be the Continuing Trust). Preferred Securityholders of Income & Growth Split also voted in favour of an extraordinary resolution authorizing various amendments to the trust agreement (the “Amendments”) and trust indenture of the fund. The Manager has decided to maintain quorum requirements as currently stipulated and therefore did not put forth the proposal to proceed with the proposed amendments to quorum as described in the Circular.

The Merger is being proposed, in part, in response to the announcement on October 31, 2006 by the Minister of Finance (Canada) regarding proposed measures to tax certain distributions from publicly-traded income trusts and partnerships. The Merger is also expected to provide Unitholders and Preferred Securityholders with the opportunity to hold an investment in an entity that has a larger market capitalization, potential increased liquidity and a potentially lower management expense ratio.

The Merger and the Amendments will also be considered by unitholders of the funds at the adjourned special meetings of such unitholders to be held on January 23, 2007, and implementation of the Merger and the Amendments are conditional on the approval of the unitholders at such meetings, all as described in the Circular.

Details regarding the proposed merger, exchange and amendments are contained in a joint management information circular (the “Circular”) which was mailed to Unitholders and Preferred Securityholders in December. The Circular was posted on Faircourt’s website and on the SEDAR website at www.sedar.com.