Redwood Asset Management Announces Exchange Ratios for First Ever ETF Exchange Offer for the Redwood Canadian Preferred Share Fund

TORONTO, Sept. 15, 2017 (GLOBE NEWSWIRE) — Redwood Asset Management Inc. (“Redwood”) is pleased to announce the exchange ratios for the exchange offering for the ETF units of the Redwood Canadian Preferred Share Fund (the “ETF”, or “the Fund”). The offering, which closes on September 22, 2017, is the first of its kind in Canada, and is another example in Redwood’s focus on delivering innovative solutions to Canadian investors. The ETF units of the Fund trade under the ticker symbol RPS on the NEO Exchange.  

The number of ETF Units that may be purchased in-kind by tendering eligible securities of exchange eligible issuers has been determined by dividing the volume weighted average trading price (“VWAP”) of the security during the five consecutive trading days ending on September 15, 2017 (the “Pricing Period”), as adjusted to reflect any distributions declared by any exchange eligible issuer that will not be received by the Fund, by the net asset value of the Fund on the last day of the Pricing Period (the “Exchange Ratio”). The Exchange Ratio for any securities that did not trade in Canadian dollars was determined by converting the weighted average trading price on the applicable exchange for such securities into Canadian dollars based on the 4:00 p.m. currency exchange rate on the last day of the Pricing Period. Holders of securities of Exchange Eligible Issuers (“Exchange Eligible Holders”) who deposited securities pursuant to the Exchange Option will continue to be holders of record up to but not including the date of the closing of this Offering, and will be entitled to receive distributions in respect of Exchange Eligible Issuers securities up to but not including this date. Each Exchange Ratio has been rounded down to five decimal places. The Fund will not issue fractional ETF units pursuant to the Exchange Option. Entitlement to fractional ETF units will be determined on the basis of the aggregate number of securities of each exchange eligible issuer acquired pursuant to the Exchange Option and the Fund will issue to the Canadian Depository for Securities (“CDS”) cash in lieu thereof. Allocations by CDS of cash in lieu of fractional Units to participants in CDS will be at the discretion of CDS and the allocation of cash in lieu of fractional ETF units to purchasers who have authorized the deposit of securities of exchange eligible issuers through CDS will be at the discretion of the CDS participants.

The investment objective of the Fund is principally to provide a consistent stream of income with potential for capital appreciation by investing in Canadian income producing securities and Canadian equities.

The table below sets out the Exchange Eligible Issuers, the securities of which that were accepted by the Fund pursuant to the Exchange Option, including the name of the Exchange Eligible Issuer, its ticker symbol, its CUSIP number, its ISIN, its VWAP during the Pricing Period and the Exchange Ratio.

Name   Ticker Symbol    CUSIP   ISIN   VWAP ($)    Exchange Ratio 
Bank of Montreal   BMO T   063679609      CA0636796090      22.11   0.88462
Bank of Montreal   BMO Y   06367X200   CA06367X2005   23.88   0.95544
Bank of Montreal   BMO R   063671770   CA0636717708   24.27   0.97104
Bank of Nova Scotia/The   BNS Q   064149727   CA0641497270   24.99   0.99985
Bank of Nova Scotia/The   BNS Z   064149610   CA0641496108   22.55   0.90223
Bank of Nova Scotia/The   BNS Y   064149636   CA0641496363   22.60   0.90423
Bank of Nova Scotia/The   BNS A   064149735   CA0641497353   24.90   0.99625
BCE Inc   BCE K   05534B679   CA05534B6796   18.12   0.72498
BCE Inc   BCE A   05534B794   CA05534B7943   18.29   0.73178
BCE Inc   BCE L   05534B661   CA05534B6614   17.39   0.69577
BCE Inc   BCE M   05534B646   CA05534B6465   18.45   0.73819
BCE Inc   BCE N   05534B638   CA05534B6382   18.36   0.73458
BCE Inc   BCE O   05534B620   CA05534B6200   24.37   0.97504
BCE Inc   BCE R   05534B703   CA05534B7034   19.16   0.76659
BCE Inc   BCE Y   05534B851   CA05534B8511   18.60   0.74419
BCE Inc   BCE D   05534B687   CA05534B6879   18.64   0.74579
BCE Inc   BCE H   05534B729   CA05534B7299   18.62   0.74499
Brookfield Asset Management Inc   BAM X   112585690   CA1125856908   17.18   0.68737
Brookfield Asset Management Inc   BAM T   112585724   CA1125857245   20.31   0.81260
Brookfield Asset Management Inc   BAM R   112585740   CA1125857401   19.86   0.79460
Brookfield Asset Management Inc   BAM G   112585609   CA1125856098   16.78   0.67137
Brookfield Asset Management Inc   BAM FD   112585567   CA1125855678   21.99   0.87982
Brookfield Asset Management Inc   BAM E   112585500   CA1125855009   19.36   0.77459
Brookfield Office Properties Inc   BPO R   112900782   CA1129007821   22.28   0.89142
Brookfield Renewable Power Preferred Equity Inc   BRF A   11283Q206   CA11283Q2062   20.45   0.81821
Brookfield Renewable Power Preferred Equity Inc   BRF B   11283Q305   CA11283Q3052   20.79   0.83181
Canadian Imperial Bank of Commerce   CM O   136069440   CA1360694402   22.28   0.89142
Canadian Utilities Ltd   CU C   136717691   CA1367176916   21.79   0.87182
Capital Power Corp   CPX C   14042M508   CA14042M5081   20.66   0.82661
Element Fleet Management Corp   EFN E   286181813   CA2861818136   23.43   0.93744
Element Fleet Management Corp   EFN G   286181789   CA2861817898   24.10   0.96424
Emera Inc   EMA A   290876309   CA2908763097   18.20   0.72818
Enbridge Inc   ENB B   29250N709   CA29250N7099   18.57   0.74299
Enbridge Inc   ENB Y   29250N683   CA29250N6836   19.99   0.79980
Enbridge Inc   ENB F   29250N865   CA29250N8659   20.50   0.82021
Enbridge Inc   ENB P   29250N758   CA29250N7586   20.32   0.81300
Enbridge Inc   ENB H   29250N840   CA29250N8402   19.11   0.76459
Enbridge Inc   ENB T   29250N733   CA29250N7339   20.30   0.81220
Enbridge Inc   ENB D   29250N881   CA29250N8816   19.70   0.78820
Enbridge Inc   ENB J   29250N642   CA29250N6422   21.02   0.84101
Fairfax Financial Holdings Ltd   FFH H   303901854   CA3039018542   19.20   0.76819
Fortis Inc/Canada   FTS H   349553826   CA3495538264   17.17   0.68697
Great-West Lifeco Inc   GWO H   39138C874   CA39138C8741   22.55   0.90223
Great-West Lifeco Inc   GWO R   39138C759   CA39138C7594   22.58   0.90343
Husky Energy Inc   HSE A   448055202   CA4480552021   16.61   0.66457
Industrial Alliance Insurance & Financial Services Inc   IAG G   455871806   CA4558718066   22.87   0.91503
Industrial Alliance Insurance & Financial Services Inc   IAG A   455871301   CA4558713018   22.11   0.88462
Manulife Financial Corp   MFC M   56501R692   CA56501R6923   22.06   0.88262
Manulife Financial Corp   MFC N   56501R676   CA56501R6766   21.94   0.87782
Manulife Financial Corp   MFC K   56501R742   CA56501R7426   21.48   0.85942
Manulife Financial Corp   MFC L   56501R726   CA56501R7269   21.07   0.84301
National Bank of Canada   NA W   633067285   CA6330672859   21.79   0.87182
National Bank of Canada   NA S   633067319   CA6330673196   22.51   0.90063
National Bank of Canada   NA Q   633067335   CA6330673352   24.79   0.99185
Northland Power Inc   NPI A   666511308   CA6665113081   19.00   0.76019
Pembina Pipeline Corp   PPL E   706327111   CA7063271117   22.96   0.91863
Pembina Pipeline Corp   PPL I   706327806   CA7063278062   24.84   0.99385
Power Corp of Canada   POW G   739239853   CA7392398532   24.84   0.99385
Power Financial Corp   PWF P   73927C779   CA73927C7796   16.73   0.66937
Power Financial Corp   PWF R   73927C753   CA73927C7531   25.10   1.00425
Power Financial Corp   PWF Q   73927C761   CA73927C7614   17.02   0.68097
Royal Bank of Canada   RY J   78012Q112   CA78012Q1129   23.66   0.94664
Sun Life Financial Inc   SLF I   866796832   CA8667968322   23.40   0.93624
Sun Life Financial Inc   SLF G   866796881   CA8667968819   17.17   0.68697
Toronto-Dominion Bank/The   TD FC   891145658   CA8911456587   22.07   0.88302
Toronto-Dominion Bank/The   TD FE   891145617   CA8911456173   24.33   0.97344
Toronto-Dominion Bank/The   TD T   891145724   CA8911457247   24.65   0.98625
Toronto-Dominion Bank/The   TD Z   891145716   CA8911457163   24.64   0.98585
TransCanada Corp   TRP A   89353D404   CA89353D4049   19.29   0.77179
TransCanada Corp   TRP B   89353D503   CA89353D5038   15.15   0.60615
TransCanada Corp   TRP G   89353D842   CA89353D8420   24.15   0.96624
TransCanada Corp   TRP F   89353D305   CA89353D3058   19.40   0.77619
Horizons Active Preferred Share ETF   HPR   44051D107   CA44051D1078   9.39   0.37569
iShares S&P/TSX Canadian Preferred Share Index ETF   CPD   46431G205   CA46431G2053   13.98   0.55934

About Redwood Asset Management
Redwood Asset Management is a Toronto-based investment fund manager, focused on delivering unique investment solutions managed by boutique global investment managers to Canadian investors. Redwood Asset Management is a wholly owned subsidiary of Purpose Investments Inc., which has over $3.4 billion in assets under management. More information about Redwood’s product offerings is available at www.redwoodasset.com.

For more information please contact:

Peter Shippen
President & CEO, Redwood Asset Management
T: 416.583.3850
info@redwoodasset.com

For further information, please visit our website at www.redwoodasset.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus and other disclosure documents before investing. Investment funds are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer. There can be no assurance that the full amount of your investment in a fund will be returned to you. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.