WFS.PR.A: Prospectus for Capital Unitholders' Warrants Filed

World Financial Split Corp. has announced:

that it has filed a final short form prospectus relating to an offering of Warrants to holders of Class A Shares of the Fund. Each Class A shareholder of record on November 19, 2009 will receive one Warrant for each Class A Share held. One Warrant will entitle its holder to acquire one Class A Share and one Preferred Share (together, a “Unit”) upon payment of the subscription price of $13.14. The Toronto Stock Exchange has conditionally approved the listing of the Warrants under the symbol WFS.WT and the Class A Shares and the Preferred Shares issuable upon the exercise thereof. It is expected that the Warrants will commence trading on November 17, 2009 and will remain trading until noon (Toronto time) on the expiry date of March 31, 2010.

The exercise of Warrants by holders will provide the Fund with additional capital that can be used to take advantage of attractive investment opportunities and is also expected to increase the trading liquidity of the Class A Shares and the Preferred Shares and to reduce the management expense ratio of the Fund.

The NAV of the units was 13.23 on November 5. WFS closed today at 3.25-34, 11×10, and WFS.PR.A closed at 9.40-45, 25×7.

WFS.PR.A was last mentioned on PrefBlog when the intent to issue warrants was announced. WFS.PR.A is tracked by HIMIPref™ but is relegated to the Scraps subindex on credit concerns.

Update, 2009-12-4: The company has renewed its issuer bid. This news is not worthy of its own post (despite the commentary in Split-Share Buy-Backs? WFS.PR.A & FIG.PR.A Examined) because, as the 2008 Annual Report states:

Under the terms of the normal course issuer bid that was renewed in November 2008, the Fund proposes to purchase, if considered advisable, up to a maximum of 1,275,271 Class A shares (2007 – 1,414,293) and up to a maximum of 1,275,271 Preferred shares (2007 – 1,414,293), 10 percent of its public float as determined in accordance with the rules of the Toronto Stock Exchange. The purchases would be made in the open market through facilities of the Toronto Stock Exchange. The normal course issuer bid will remain in effect until the earlier of November 12, 2009 or until the Fund has purchased the maximum number of units permitted under the bid. As at December 31, 2008, nil shares (2007 – nil) have been purchased by the Fund.

2 Responses to “WFS.PR.A: Prospectus for Capital Unitholders' Warrants Filed”

  1. […] is as yet no word on the take-up of the WFS warrants, which expired today out of the money, or regarding the SBN warrants, […]

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