Exchange Bulletin
Purpose Premium Yield Fund (PYF) To Trade On Toronto Stock Exchange
Purpose Premium Yield Fund (the “Fund”) - An application has been granted for the original listing in the Industrial category of 200,000 ETF shares of the Fund, all of which will be issued and outstanding, and none of which will be reserved for issuance upon completion of an initial public offering.
The Fund is a separate class of shares of Purpose Fund Corp. (the “Company”), a mutual fund corporation. Each class of shares of the Company (other than the common shares of the Company) is a separate investment fund having specific investment objectives and is specifically referable to a separate portfolio of investments, each, a “Corporate Class”). Each class of shares is divided into separate series. The Fund has three series of shares, namely the Series A Shares and Series F Shares mutual fund shares (all unlisted) and the ETF shares.
Listing of the ETF shares will become effective at 5:01 p.m. on Monday, January 18, 2016, as the offering will close prior to the opening on Tuesday, January 19, 2016. The ETF shares will be posted for trading at the opening on Tuesday, January 19, 2016.
The registration of interest in, and transfers of, ETF shares will be effected through the book-entry only system administered by CDS Clearing and Depository Services Inc. ETF shareholders of the Fund will not have the right to receive physical certificates evidencing their ownership of the ETF shares.
Additional information on the ETF shares may be found in the simplified prospectus dated January 6, 2016 (the “Prospectus”), which is available at www.SEDAR.com. Capitalized terms not otherwise defined are as defined in the Prospectus.
| Stock Symbol: "PYF" | CUSIP: 74641L 10 3 | Trading Currency: CDN$ |
| Designated Market Maker: | BMO Nesbitt Burns Inc. |
| Other Markets: | None |
| Head Office Address: | 130 Adelaide Street West, Suite 1700 P.O. Box 83 Toronto, Ontario M5H 3P5 |
| Website: | www.purposeinvest.com |
| Telephone Number: | (416) 583-3850 |
| Fax Number: | (416) 583-3851 |
| Investor Relations: | Som Seif Tel: (416) 583-3856 info@purposeinvest.com -or- Scott Bartholomew Tel: (416) 583-3857 info@purposeinvest.com |
| Chief Financial Officer: | Scott Bartholomew |
| Secretary: | Lara Misner |
| Incorporation: | Purpose Fund Corp. is a mutual fund corporation incorporated under the laws of the Province of Ontario pursuant to the Business Corporations Act (Ontario) on April 29, 2013. The Fund is a class of shares of Purpose Fund Corp. |
| Manager: | Purpose Investments Inc. |
| Fiscal Year End: | December 31 |
| Nature of Business: | The Fund seeks to provide shareholders with (i) high monthly income and (ii) long-term capital appreciation. The fund will achieve its investment objectives primarily by investing in the equity markets including by (i) writing cash covered put options to reduce the net cost of acquiring securities and receive premiums and (ii) directly investing in equity securities and writing call options on these securities to receive dividends and premiums. The Fund will invest in securities using a quantitative fundamental bottom up strategy that emphasizes factors that have shown to be effective at differentiating between strong and weak performing stocks including: fundamental change, valuation, growth and quality in order to create value, generate income and reduce risk over the investment period. The Fund may invest up to 100% of its assets in foreign securities. |
| Transfer Agent & Registrar: | Equity Financial Trust Company, at its principal office in Toronto. |
| Switching between ETF shares: |
Holders of ETF shares may switch ETF shares of one Corporate Class to ETF shares of another Corporate Class through the facilities of CDS by contacting their financial advisor or broker (a “Switch”). Initially, Switches will occur once a week on Wednesdays (“ETF switch date”) by delivering written notice to the Fund at least one business day prior to the ETF switch date and surrendering such ETF shares by 4:00 p.m. (Toronto time) on such date. Written notice must contain the name of the fund, the TSX ticker symbol of the fund and the number of ETF shares to be switched and the name of the fund and the TSX ticker symbol of the ETF shares of the fund the holder wishes to switch to. Purpose may, in its discretion, change the frequency of Switches from weekly to daily without notice. ETF shares of one fund may not be switched for unlisted mutual fund shares of any fund or vice versa. The number of ETF shares to be received upon a Switch will be equal to the NAV per ETF share on the ETF switch date (the “Switch NAV”) of the fund switched to, divided by the Switch NAV per ETF share of the fund switched from. No fractional ETF share will be issued. Instead, any remaining fractional ETF share will be redeemed at the Switch NAV. A Switch of ETF Shares from one fund to ETF Shares of a different fund will not constitute a disposition of ETF shares for the purposes of the Income Tax Act (Canada). The payment of cash on the redemption of fractional ETF shares will, however, result in a capital gain (or capital loss). Dealers or financial advisors may charge a fee of up to 2% of the value of ETF shares switched. |
| Fund Corporation Risk: | Each fund is a separate share class of the Company and each class is available in more than one series. Each class and series has its own fees and expenses which are tracked separately. Those fees and expenses will be deducted in calculating the net asset value for that class or series thereby reducing the net asset value. The liabilities of each of the funds are liabilities of the Company as a whole. If one class or series is unable to pay its expenses or liabilities, the Company is legally responsible to pay those expenses and as a result, the net asset value of the other classes or series may also be reduced. Similarly, if the liabilities of a fund are greater than its assets, the other funds may be responsible for those liabilities. |
| Dividends: | The Fund expects to make distributions monthly. Distributions are reinvested in additional units of the fund unless ETF Shareholders advise their dealer to inform the fund that they wish to receive their distributions in cash. Distributions of any excess income are determined and made annually and distributions of any excess capital gains, if any, are made annually in February. The Fund will provide shareholders with the opportunity to reinvest dividends in additional ETF shares through a dividend reinvestment plan. |
| Initial Issuance of ETF shares: | Pursuant to the terms of the Prospectus, ETF shares will be issued and sold on a continuous basis and there will be no maximum number of ETF shares that may be issued. ETF shares sold in connection with the initial public offering for the Fund will amount to 200,000 ETF shares at a price of $20.00 per ETF share. |
