GMIncome & Growth Fund (TSX:GMF.A) has completed its initial public offering of combined units at a price of $12 per combined unit, Middlefield Group said Wednesday.

Each GMI combined unit consists of one unit of the fund and one unit purchase warrant. The combined units will separate into units and warrants upon the earlier of the closing of an over-allotment option and the 30th day following the closing of the offering. Each warrant entitles the holder to purchase one unit for $1 on or before 17:00 ET on Oct. 14, 2011. Warrants not exercised by then will be void and of no value.

Combined units of GMI will trade on the Toronto Stock Exchange under the symbol GMF.A. Following the separation of combined units, GMI units and Warrants will trade under the symbols GMF.UN and GMF.WT.

Guardian Capital LP and Middlefield Capital Corporation will act as co-advisors of the fund. Led by John Priestman, Guardian and Middlefield have successfully co-advised several closed-end funds focused on the Canadian equity income sector since 2001. All of the closed-end funds for which Guardian and Middlefield act as co-advisors have paid distributions to date in accordance with their respective investment objectives.

For investment objectives, GMI aims to pay monthly cash distributions initially targeted to be 7% per unit per year based on the original subscription price. It also aims to maximize total returns for unitholders, consisting both of cash distributions and capital appreciation, while reducing risk and preserving capital through active investment management.

The fund will invest in an actively managed, diversified portfolio comprised primarily of Canadian dividend-paying common shares, preferred shares, income trust units and convertible debentures. The portfolio will be comprised of securities which, in the view of the co-advisors, are of high quality issuers and which generate sufficient dividends or interest payments to allow the fund to achieve its investment objectives, as well as units of income trusts which, in the view of the co-advisors, are undervalued or may be taken over at a premium to their market prices.

The syndicate of agents was co-led by CIBC World Markets Inc. and RBC Capital Markets and included BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., GMP Securities L.P., Canaccord Genuity Corp., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Macquarie Private Wealth Inc., Manulife Securities Incorporated, Wellington West Capital Markets Inc., Middlefield Capital Corporation and Worldsource Securities Inc.

As part of an over-allotment option granted to the syndicate, the fund may issue additional units within the next 30 days.

IE