TORONTO, ONTARIO--(Marketwired - Jan. 27, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Value Line® Timeliness™ 100 Fund (the "Fund") announces that it has extended the deadline for the deposit of exchange eligible securities with respect to the initial public offering (the "Offering") of Class A Units and Class T Units of the Fund (collectively, the "Units").
Prospective purchasers investing in the Fund under the exchange option (the "Exchange Option") are now permitted to deposit their exchange eligible securities prior to 5:00 p.m. (Toronto time) on February 22, 2016 in the manner described in the preliminary prospectus of the Fund dated December 23, 2015 (the "Preliminary Prospectus"). Such deposits must be made in the form of a book-entry deposit with CST Trust Company, the Fund's agent for the exchange option, through CDS Clearing and Depository Services Inc. ("CDS"). Investment dealers, who will make these deposits through CDS, may have an earlier deadline for receiving instructions from investment advisors to deposit securities under the Exchange Option. The pricing period for the Exchange Option (the "Pricing Period") has also been revised and will be the period of five consecutive trading days ending on and including February 22, 2016. The Fund will issue a press release as soon as possible after the end of the Pricing Period announcing, among other things, the exchange ratio for each of the exchange eligible securities.
The Fund has filed and obtained a receipt for the Preliminary Prospectus from the securities regulatory authorities in each of the provinces and territories of Canada. The Fund proposes to issue Class A Units and Class T Units at a price of $10.00 per Unit in cash or by exchanging securities of issuers under the Exchange Option. BMO Nesbitt Burns Inc. (the "Manager"), the manager of the Fund, will pay all fees and all expenses of the Offering exceeding 0.50% of the gross proceeds of the Offering. As a result, the net asset value per Unit immediately following the closing of the Offering will be at least $9.95 (assuming the price of the exchange eligible securities on the closing date of the Offering is the same as the price that was used to calculate the exchange ratios).
The Fund uses the Unit Traded Fund (UTF) structure which has been developed to accomplish two goals: (i) to enable the Fund to invest substantially all of the gross proceeds from the Offering in the Portfolio (as defined below); and (ii) to encourage the Class T Units to trade in the market at a price not less than 98.5% of their net asset value throughout the life of the Fund.
The Fund's investment objectives are to provide holders of Units (the "Unitholders") with: (i) the opportunity for capital appreciation; (ii) quarterly cash distributions; and (iii) lower overall volatility of portfolio returns than would be experienced by owning the Portfolio Securities (as defined below) directly.
The Fund will invest on an equal weight basis in a portfolio of equity securities (the "Portfolio") listed on a U.S. stock exchange that are assigned a #1 Ranking by the Value Line Timeliness™ Ranking System (the "Ranking System").
The Ranking System is a proprietary quantitative system of Value Line Publishing LLC ("Value Line" or "VLP") which ranks all of the approximately 1,700 equity securities in its universe for relative price performance in the following six to 12 months on a scale of 1 (highest) to 5 (lowest). The universe followed by the Ranking System consists of shares of approximately 1,700 companies accounting for approximately 90% of the market capitalization of all shares traded on the U.S. stock exchanges. The Portfolio will initially be comprised of all the shares ranked #1 by the Ranking System in effect on the Closing Date (the "Portfolio Securities"). Thereafter, the Portfolio will be constituted and rebalanced annually within 10 Business Days of December 31 of each year beginning in 2016 based on the rankings then in effect.
In order to seek to earn income from option premiums to supplement the dividends generated by the Portfolio Securities and to lower the overall volatility of returns associated with the securities held in the Portfolio, the Portfolio Manager (as defined below) will write covered call options from time to time on up to 25% of the Portfolio as selected by the Portfolio Manager. The quarterly cash distributions to Unitholders are initially targeted to be $0.10 per Unit ($0.40 per annum per Unit) representing an annual yield of 4.0% on the issue price.
Horizons ETFs Management (Canada) Inc. (the "Portfolio Manager") will be responsible for implementing the investment strategy of the Fund including the option writing strategy. BMO Nesbitt Burns Inc. is the promoter of the Fund, one of the agents in connection with the Offering, and will act as the manager of the Fund.
The syndicate of agents for the Offering is being co-led by BMO Capital Markets, CIBC, National Bank Financial Inc. and Scotiabank, and also includes Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Dundee Securities Ltd., Global Securities Corporation, Industrial Alliance Securities Inc., Laurentian Bank Securities Inc., Mackie Research Capital Corporation, Manulife Securities Incorporated and PI Financial Corp.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities of the Fund have not been registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to a U.S. person absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
"Value Line®" and "Timeliness™" are trademarks or registered trademarks of Value Line, Inc. that are licensed to the Manager. The Fund is not sponsored, recommended, sold or promoted by Value Line, Value Line, Inc., or any of their affiliates. The Manager is not affiliated with any Value Line company. Value Line has not passed on the legality or suitability of or the accuracy or adequacy of descriptions and disclosures relating to the Fund.
The Preliminary Prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The Preliminary Prospectus is still subject to completion or amendment. Copies of the Preliminary Prospectus may be obtained from any of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
VALUE LINE® TIMELINESS™ 100 FUND