NewGrowth Corp. has announced:
that its Board of Directors has approved a proposal to reorganize the Company. The reorganization will permit holders of Capital Shares to extend their investment in the Company beyond the scheduled redemption date of June 26, 2009 for up to an additional 5 years. The Preferred Shares will be redeemed on the same terms originally contemplated in their share provisions on June 26, 2009. Holders of Capital Shares will continue to have the right to retract annually at 100% of unit value less the par value of a Preferred Share.
The reorganization will involve the issuance of a new class of Preferred Shares in order to provide continuing leverage for the continuing holders of Capital Shares and certain adjustments to the portfolio. The reorganization will be subject to receipt of all necessary regulatory approvals.
A special meeting of holders of Capital Shares has been called and will be held on May 11, 2009 to consider and vote upon the reorganization. Details of the proposed reorganization will be outlined in an information circular to be prepared and delivered to holders of Capital Shares in connection with the special meeting.
NEW.PR.B was last mentioned on PrefBlog when it was announced that the the company was considering a term extension. Given that the capital units, NEW.A, were issued at $1.93 and now have an NAV of $13.71, it is not surprising that some holders do not wish to crystallize their capital gain.
NEW.PR.B is not tracked by HIMIPref™.
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