Jovian Capital Corp. (TSX:JOV) is planning to pay its $4 per share cash distribution on May 11, the company said Thursday.
The special return of capital distribution is derived from proceeds realized from the sale by Jovian of MGI Financial Inc. on Oct. 5, 2011, and the Horizons ETFs business on Nov. 14, 2011.
Shareholders will vote on the proposed distribution at a special meeting set for April 16.
Jovian also announced that its board of directors has determined that Jovian will complete the early repayment of the $15 million of secured bonds issued in July 2010. These bonds will be repaid in accordance with their terms at 103% of face value, together with accrued interest up to the date of repayment. The bonds carry an 8% coupon, and would have otherwise matured on July 6, 2015. The early repayment is expected to be completed in mid-April.
In addition, Jovian announced that, given the significant return of capital to shareholders, Jovian’s board of directors has determined, in accordance with the company’s employee stock option plan, that all currently unvested stock options shall immediately be vested to allow all holders of Jovian stock options the opportunity to exercise their options prior to the special distribution.
Jovian Capital operates in two primary market segments: wealth management and traditional asset managers. It currently manages about $6.3 billion of client assets $4.9 billion in assets under management and $1.4 billion in assets under administration.