PrefBlog

I missed this when it came out – Quadravest has announced:

Prime Dividend Corp. (the “Company”) is pleased to announce that it will issue warrants (“Warrants”), to all Class A Shareholders. Each Class A Shareholder will be entitled to receive one Warrant for each Class A Share held as of the record date of May 4, 2012. One Warrant will entitle the holder to purchase a Unit consisting of one Class A Share and one Preferred Share for $17.25. The Warrants are exercisable at anytime up to 5:00 p.m. (Toronto time) on February 28, 2013, the expiry date. If all the Warrants are exercised, the Company will issue approximately 1,539,460 Units and will receive net proceeds of $25,955,820. The net proceeds from the subscription of Units will be used to acquire additional securities in accordance with the Company’s investment objectives, strategies and restrictions. By raising additional cash through this offering it allows the Company to capitalize on certain attractive investment opportunities that may arise over the next few months. In addition, if the full subscription was exercised the offering could increase the trading liquidity of the Company and reduce the management expense ratio.

Both the Preferred Shares and Class A Shares trade on the Toronto Stock Exchange (the “TSX”) under the symbol “PDV.PR.A.” and “PDV” respectively. The Warrants will be listed on the TSX under the ticker symbol “PDV.WT”. It is expected that Warrants will commence trading on May 7, 2012 and continue trading until 12:00 (EST) on February 28, 2013.

The warrants are currently well out the money, as the Unit Value on June 29 was 15.89.

PDV.PR.A was last mentioned on PrefBlog in connection with its term extension to 2018-12-1.

PDV.PR.A is not tracked by HIMIPref™.

This entry was posted on Sunday, July 8th, 2012 at 1:02 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.