Norrep Short Duration 2017 Flow-Through Limited Partnership Completes Rollover Transaction
May 25, 2018
Calgary, Alberta – Norrep Capital Management Ltd. (NCM), the manager of Norrep Short Duration 2017 Flow-Through Limited Partnership (the Partnership), announces that the previously announced tax-deferred transfer of the assets of the Partnership to Norrep Opportunities Corp. (Norrep Opportunities), an open-end mutual fund corporation, in exchange for Series F shares of Norrep Energy Plus Class (formerly, Norrep Energy Class) (the Series F Shares), a class of shares of Norrep Opportunities, has been completed effective as of May 24, 2018 (the Liquidity Transaction).
The net asset values were calculated as at the close of business on May 24, 2018. The Partnership closed at a final price of $8.91 per unit. The Partnership received an aggregate of 890,180 Series F Shares with an aggregate net asset value of approximately $7,998,272. As a result of the transfer, each limited partner of the Partnership (a Limited Partner) will receive, upon dissolution of the Partnership, approximately 0.9911 of a Series F Share for each limited partnership unit based on a net asset value of $8.91 per unit for the Partnership and a net asset value of $8.98 per share for the Series F Shares. The estimated adjusted cost base for the Partnership is $1.5897 per unit, which translates to $1.6039 per share for the Series F Shares distributed to Limited Partners. The Series F Shares will be distributed to the Limited Partners within five business days following the effective date of the Liquidity Transaction.
The Partnership will be dissolved in accordance with the Partnership Act (Alberta) on or around May 25, 2018.
Norrep Energy Plus Class is a publicly offered mutual fund, as are the other mutual funds that are share classes of Norrep Opportunities. Norrep Opportunities is managed by NCM, which is also the portfolio adviser to the Partnership. Information about Norrep Energy Plus Class and Norrep Opportunities, such as their simplified prospectus, Fund Facts documents, annual information form and financial statements, is available at the NCM website (www.norrep.com) and also at www.sedar.com.
There will be no fees or costs charged to Limited Partners as a result of the Liquidity Transaction. No costs associated with the Liquidity Transaction will be charged to Norrep Opportunities. The Liquidity Transaction does not represent a taxable event. Investors may defer the capital gains tax liability that would otherwise occur upon the disposition of the investment by continuing to hold the Series F Shares of Norrep Energy Plus Class. Limited Partners may switch their Norrep Energy Plus Class shares to any other NCM investment fund on a taxable basis:
|Norrep II Class||Canadian Small/Mid Cap Equity|
|Norrep Income Growth Class||Canadian Equity Balanced|
|Norrep US Dividend Plus Class||U.S. Equity|
|Norrep Entrepreneurs Class||Canadian Small/Mid Cap Equity|
|Norrep Global Income Growth Class||Global Equity Balanced|
|Norrep Tactical Opportunities Class||Tactical Balanced|
|Norrep Core Global||Global Equity|
|Norrep Core Canadian||Canadian Equity|
|Norrep Premium Growth Class||Tactical Balanced|
|Norrep High Income Fund||High Yield Fixed Income|
|Norrep Short Term Income Fund||Miscellaneous - Income and Real Estate Property|
Information about Norrep Opportunities, including Norrep Energy Plus Class
Information about Norrep Energy Plus Class and the other funds within Norrep Opportunities and Norrep Core Portfolios Ltd. or any other fund in the Norrep Group of Funds is available in their respective Fund Facts documents, simplified prospectus, annual information form, management reports of fund performance and financial statements. You can obtain a copy of these documents at your request and at no cost by contacting NCM toll free at: 1-877-431-1407, by e-mailing firstname.lastname@example.org, by downloading from www.norrep.com or www.sedar.com or from your financial advisor.
Norrep Energy Plus Class invests in equities of all market capitalization in the resource sector using a value methodology commonly referred to as “growth at a reasonable price”. This approach means aiming to target resource companies that: (a) have a strong management team; (b) are trading below intrinsic value or at discount to peers; and (c) have above average growth prospects. Norrep Energy Plus Class invests in companies believed to have a high potential for share price appreciation that can be realized from a revaluation of the company, growth from a developing resource prospect and/or from exposure to rising commodity prices. Norrep Energy Plus Class is classified as an Energy Equity fund, thus it invests at least 90 percent of its equity holdings in the securities of companies in the Energy Sector.
About NCM - Norrep Capital Management Ltd.
For over 20 years, NCM has been one of Canada’s leaders in actively managed investment products. With an in-house portfolio management team and a family of actively managed funds, NCM has earned multiple awards recognizing its investment success. NCM is an independent Canadian investment firm with offices in Calgary and Toronto, distributing retail mutual funds and related products and services to Canadian investors, through a third party distribution channel. (www.norrep.com)
Certain information set forth in this press release, including a discussion of the timing and completion of the dissolution of the Partnership, of the anticipated tax treatment regarding the Series F Shares, and of the timing and completion of the distribution of the Series F Shares to Limited Partners, constitutes forward-looking information. This forward-looking information is based upon assumptions, such as assumptions regarding general business, economic and market conditions and tax and regulatory matters and the ability of the applicable parties to complete distribution of the Series F Shares and the dissolution of the Partnership, and is subject to substantial known and unknown risks and uncertainties, some of which are beyond management's control, including, but not limited to, general business, economic and market uncertainties, changes to applicable tax and regulatory matters, the delay or failure to obtain all required approvals and risks to the business, financial condition and operations of the applicable parties involved in the contemplated distribution and dissolution. Actual results could materially differ from those expressed in or implied by this forward-looking information and there is no assurance that the distribution and dissolution will be completed. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. The forward-looking information contained in this press release is made as of the date hereof and NCM disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events, changes in assumptions or otherwise, except as expressly required by applicable law. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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Certain information set forth in this press release, including a discussion of future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management’s control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. Actual results, performance or achievement could differ from those expressed in or implied by these forward-looking statements.