OilSands Canada Corp. has filed an amendment to the preliminary prospectus to modify certain provisions of the exchange option of its initial public offering. Under the exchange option, individuals investing in the fund may pay for units by exchanging securities of certain specified issuers.
The new deadline for participation in the exchange option is July 18, 2007.
The amendment allows investors to tender securities under the exchange option without triggering a capital gain. In addition, the fund has expanded the list of exchange eligible issuers whose securities will be accepted by the fund under the exchange option.
For a complete list of eligible issuers, please refer to the attached news release.
By exchanging securities for units of the fund, investors are able to achieve the benefits of diversification and professional management.
OilSands Canada Corp. is a closed-end fund offering advised by Middlefield Capital Corp.
The fund has been created to provide long-term capital appreciation by investing in an actively managed, diversified portfolio comprised primarily of publicly-listed energy-related equity securities of issuers that operate in or have exposure to the Canadian oil sands sector. Additionally, up to 20% of the portfolio may be invested in securities of private issuers operating in the oil sands sector which, in the view of Middlefield Capital, are acquisition targets or are likely to become publicly-listed in the near to mid term, thereby offering the potential for capital appreciation.
Each unit of the fund purchased on the initial public offering for $10 will consist of one equity share and one-half equity share purchase warrant. Each whole warrant is exercisable at a price of $10.25 and expires on July 31, 2010.
With approximately $4 billion in assets under management, Middlefield has specialized in the oil and gas and mining sectors for many years. Groppe, Long & Littell, a Houston, Texas based oil and gas consulting firm, will be special advisor to Middlefield, providing it with an analysis of the global economic and political forces impacting the prices of oil and natural gas. Henry Groppe, the founder of Groppe, Long & Littell will be the individual primarily involved in providing services to the fund. Groppe has over 50 years of experience in the oil, natural gas and petrochemical industries.
The syndicate of agents is being co-led by CIBC World Markets Inc. and RBC Capital Markets, and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, Raymond James Ltd., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Blackmont Capital Inc., Wellington West Capital Inc., Berkshire Securities Inc., Desjardins Securities Inc., Middlefield Capital Corporation, Research Capital Corporation and Richardson Partners Financial Ltd.
OilSands Canada amends exchange option provisions
IPO exchange option extended to permit tax deferred rollover
- By: IE Staff
- July 5, 2007 July 5, 2007
- 09:40