Commerce Split Corp. Extends Termination Date
February 21 2019 - 3:00PM
Commerce Split Corp. (the “Company”) is pleased to announce it will
extend the termination date of the Company a further five year
period from December 1, 2019 to December 1, 2024.
The term extension allows holders of YCM Capital
Shares (“Capital Shares”) to receive ongoing leveraged exposure to
a portfolio consisting of common stock of Canadian Imperial Bank of
Commerce, as well as receiving targeted monthly distributions if
and when the net asset value (“NAV”) is greater than $15.00.
Holders of YCM.PR.A Class I Preferred Shares (“Class I Preferred
Shares”) and YCM.PR.B Class II Preferred Shares (“Class II
Preferred Shares”) are expected to continue to benefit from
cumulative preferential monthly distributions.
The extension of the term of the Company is not
expected to be a taxable event and should enable shareholders to
defer potential tax liability that would have otherwise been
realized on the redemption of the Capital Shares, Class I Preferred
Shares and Class II Preferred Shares at the end of the term, until
such time as such shares are disposed of by shareholders.
In connection with the extension, the Company
will have the right to amend the rate of cumulative preferential
monthly dividends to be paid to the Class I Preferred Shares and
Class II Preferred Shares for the five year renewal period,
commencing December 1, 2019. Any change to the Preferred Share
dividend rates for the extended term will be based on market yields
for preferred shares with similar terms at such time and will be
announced no later than September 30, 2019.
The Company invests in common shares of Canadian
Imperial Bank of Commerce, a Canadian financial institution.
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 Company.
The forward-looking statements are not historical facts but reflect
the Company’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
Company 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
Company 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.
Commissions, trailing commissions, management fees and expenses all
may be associated with mutual fund investments. Investors should
read the prospectus before investing. Mutual funds are not
guaranteed, their values change frequently and past performance may
not be repeated. Please read the Company’s publically filed
documents which are available at www.sedar.com.
Investor Relations: 1-877-478-2372Local:
416-304-4443www.commercesplit.cominfo@quadravest.com
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