LBS.PR.A: Warrants for Capital Unitholders

Life & Banc Split Corp. has announced:

that it has filed a final prospectus for an offering of warrants to Class A shareholders of the Company. Each Class A shareholder of record on July 19, 2010 will receive one half of one warrant for each Class A share held.

One warrant will entitle the holder to purchase a Unit (consisting of one Class A share and one Preferred share of the Company) upon payment of the subscription price. The subscription price is $17.66, which is the sum of:
a) the most recently calculated NAV per Unit prior to the date of filing the final prospectus; and
b) the estimated per Unit fees and expenses of the offering.

Warrants may be exercised on or before August 23, 2010, the expiry date. The Company has applied to list the warrants (under the ticker symbol LBS.WT) and the Class A shares and Preferred shares issuable on the exercise thereof, on the TSX. Warrants will be distributed to client accounts on a best-efforts basis after the July 19, 2010 record date.

Successful completion of the warrants offering will provide the Company with additional capital that can be used to take advantage of attractive investment opportunities. It is also expected to increase the trading liquidity of the Class A shares and Preferred shares, and reduce the ongoing management expense ratio of the Company.

The intention to issue warrants was discussed in the post LBS.PR.A to Get Bigger. LBS.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit concerns.

Update, 2010-12-16: In their 2010 Semiannual report, Brompton discloses:

Unitholders received warrants on the basis of one-half of one warrant for each Class A share held on July 19, 2010. A whole warrant entitled the holder to subscribe for one unit (consisting of one Class A share and one Preferred share) of the Fund at a subscription price of $17.66. Warrants not exercised prior to August 23, 2010 were void and of no value. Upon the exercise of a warrant, the Fund paid a fee equal to $0.27 per warrant to the dealer whose client exercised the warrant.

… which is nice to know, but some disclosure of the success of the offering would have been appreciated. However, that report indicates there were 10,059,675 units outstanding as of 2010-6-30, and there are 10,307,447 (according to the Toronto Stock Exchange), so they were able to sell about 250,000 units.

One Response to “LBS.PR.A: Warrants for Capital Unitholders”

  1. […] was last mentioned on PrefBlog at the time of their warrant offering five months ago, which was something of a fizzle. LBS.PR.A is tracked by HIMIPref™ but is relegated to the […]

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