Middlefield has announced:
Investors may elect to receive units of COMPASS, valued as at November 30, 2009, in lieu of receiving cash in satisfaction of all or a portion of the amount they would otherwise receive from STRATA upon its termination on December 14, 2009.
COMPASS is a Toronto Stock Exchange (“TSX”) listed closed-end investment fund that invests in a diversified portfolio comprised primarily of high yielding equity securities of issuers operating in various industries and geographical regions. COMPASS’ annualized return since inception is 9.8% and its year-to-date total return to October 8, 2009 is 18.1%. COMPASS offers an annual redemption on November 30 at net asset value less costs. COMPASS trades on the TSX under the symbol CMZ.UN.
The value of COMPASS units issued to capital unitholders will be equivalent to a pro rata share of the net assets of STRATA remaining after payment or accrual of all debts and liabilities and liquidation expenses of STRATA. The capital units will be paid out in cash or in COMPASS units, or a combination thereof, at the capital unitholders’ option, on December 14, 2009.
The value of COMPASS units issued to preferred securityholders will be equivalent to the repayment price on the November 30, 2009 maturity date of the preferred securities. The repayment price will amount to $10.0994565 per preferred security on November 30, 2009 and will be paid in cash on November 30, 2009 or in COMPASS units on December 14, 2009, or a combination thereof, at the securityholders’ option.
The press release is not yet on the relevant web-page, but I am sure they would wish me to emphasize that this is not actually a regulatory requirement.
STW.PR.A was last mentioned on PrefBlog when a Normal-Course Issuer Bid was announced. STW.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on volume concerns.
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