Digital Consumer Dividend Fund Announces Optional Annual Redemption
TORONTO, Oct. 06, 2021 (GLOBE NEWSWIRE) — Middlefield Group, on behalf of Digital Consumer Dividend Fund (the “Fund”) (TSX: MDC.UN), is pleased to provide an update on the Fund and announce the addition of an optional annual redemption (the “Annual Redemption”).
In light of the changing landscape of the Canadian investment industry, including the implementation of client-focused reforms and the Canadian Securities Administrators’ decision to establish a new self-regulatory organization, the Manager believes that the best course of action at this time is for the Fund to remain listed on the Toronto Stock Exchange (“TSX”). This will allow the Fund to continue to benefit from the use of low-cost leverage as well as monitor the changing landscape of the investment funds industry. The Manager will continue to re-evaluate the Fund, its performance and structure to ensure the best interests of unitholders are always considered to achieve the Fund’s objectives.
Fund unitholders who do not wish to continue their investment will have the opportunity to either sell their units on the TSX or redeem their units at their net asset value in the Annual Redemption that will be implemented by the Manager. This feature is an effective tool for reducing any discount to net asset value that a fund’s units may trade at on the TSX. The Annual Redemption will be effected on the same basis as the NAV redemption right described in the Fund’s initial public offering prospectus dated May 24, 2019, with the valuation date being the second last business day of November (“Valuation Date”). Accordingly, redeeming unitholders must provide notice by 5:00 p.m. (Toronto time) on November 1, 2021 for a Valuation Date of November 29, 2021.
The Fund’s units will continue to be listed on the TSX under the symbol MDC.UN.
For further information, please visit our website at www.middlefield.com or contact Nancy Tham in our Sales and Marketing Department at 1.888.890.1868.
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “plans”, “estimates” or “intends” (or negative or grammatical variations thereof), or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to: the proposed timing of the transactions described herein and completion thereof and the benefits of such transactions. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of the Fund. There are no assurances the Fund can fulfill such forward-looking statements and the Fund does not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the Fund, many of which are beyond the control of the Fund.
