LFE.WT.B Exercised In Full; LFE.PR.B Gets Bigger

Canadian Life Companies Split Corp has announced:

all LFE.WT.B 2014 warrants were exercised for total gross proceeds of $97.9 million bringing the Company’s net assets to approximately $229.1 million. For every warrant exercised, holders received one Preferred Share and one Class A Share of the Company. The warrants expired on June 2, 2014. The proceeds from the warrant exercise are being used by the Company to invest in a portfolio of four publicly traded Canadian life insurance companies as follows: Great-West Lifeco Inc., Industrial Alliance Insurance & Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc.

As discussed at the time of the 2012 reorganization, those who surrendered one LFE.WT.B and $12.60 received one LFE and one LFE.PR.B. Exercise was firmly in the money at the time of warrant expiry 2014-6-2.

Given the May 30 NAV of about $13.74 after dilution from the warrants and payment of exercise fees to the brokers, The Net Assets of $229.1-million imply there are now 16.67-million units outstanding, a healthy increase from the 12.49-million outstanding 2013-11-30 and 13.14-million outstanding 2014-1-31.

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