GMP Capital Corp. today released more details about the proposed conversion of GMP into an income trust.

Under the proposed structure, GMP shareholders will be entitled to elect to receive in exchange for each of their GMP shares, either:

  • two units of the fund and a cash payment of $1.00; or
  • two Class B limited partner units (Exchangeable L.P. Units) of Griffiths McBurney L.P. and a cash payment of $1.00.

    GMP said it expects that the fund will make initial regular monthly distributions of approximately $0.1042 per unit, or $1.25 per year.

    The holders of Exchangeable L.P. Units will be entitled to equivalent distributions, to vote at meetings of unitholders and, following a one-year hold period, to exchange their Exchangeable L.P. Units for Units on a one-for-one basis. The total number of Exchangeable L.P. Units that may be issued will be subject to a maximum.

    GMP said its board of directors unanimously approved the terms for the conversion.

    Full details of the conversion will be provided to shareholders in the information circular being prepared.

    The conversion remains subject to shareholder and regulatory approval. The shareholders’ meeting to consider the conversion is scheduled for of November 18.

    If approved by the shareholders of GMP, a final order approving the plan of arrangement for the conversion will be sought and management anticipates that the conversion will be completed on or about December 1.