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UNITED STATES./
TORONTO, Nov. 24, 2017 /CNW/ - (TSX - PRM,
PRM.PR.A): Harvest Portfolios Group Inc. ("Harvest") is
pleased to announce that Big Pharma Split Corp. (the
"Company") has completed its initial public offering (the
"Offering") of 1,360,000 Preferred Shares and 1,360,000
Class A Shares for aggregate gross proceeds of $34 million. The Company has granted the
Agents (as defined below) an over-allotment option, exercisable for
a period of 30 days from today's date, to purchase up to an
additional 204,000 Preferred Shares and up to an additional 204,000
Class A Shares. The Class A Shares and the Preferred Shares
will commence trading today on the Toronto Stock Exchange under the
symbols "PRM" and "PRM.PR.A", respectively.
The Company will invest in an initially equally-weighted
portfolio (the "Portfolio") of ten issuers comprised of
equity securities selected by Harvest from a universe of
pharmaceutical issuers that at the time of investment and
immediately following each semi-annual reconstitution and
rebalancing: (i) are listed on a North American exchange; (ii) pay
a dividend; and (iii) have options in respect of its equity
securities that, in the opinion of Harvest, are sufficiently liquid
to permit Harvest to write options in respect of such securities
(the "Investable Universe"). The Portfolio will be comprised
primarily of the largest (as determined by market capitalization
calculated in US$) pharmaceutical issuers in the Investable
Universe. In order to seek to generate additional returns,
Harvest may write call options each month in respect to some or all
of the equity securities in the Portfolio.
The investment objectives for the Preferred Shares are to
provide their holders with fixed cumulative preferential quarterly
cash distributions in the amount of $0.125 per Preferred Share ($0.50 per annum or 5.0% per annum on the
$10.00 issue price) until
December 31, 2022 (the "Maturity
Date") and to return of the original issue price to holders on
the Maturity Date.
The investment objectives for the Class A Shares are to provide
their holders with regular monthly cash distributions targeted to
be $0.1031 per Class A Share
($1.2372 per annum or 8.25% per annum
on the $15.00 issue price) and with
the opportunity for growth in net asset value per Class A
Share.
Harvest is the manager, portfolio manager and promoter of the
Company.
The syndicate of agents for the Offering is being co-led by BMO
Capital Markets, CIBC Capital Markets and Scotiabank and also
includes National Bank Financial Inc., Canaccord Genuity Corp., GMP
Securities L.P., Raymond James Ltd., Desjardins Securities Inc.,
Echelon Wealth Partners Inc., Industrial Alliance Securities Inc.,
Mackie Research Capital Corporation and PI Financial Corp.
(collectively, the "Agents").
The Offering is made only by prospectus. The prospectus
contains important detailed information relating to the Preferred
Shares and Class A Shares being offered. Copies of the prospectus
may be obtained from any of the Agents. Investors should read
the prospectus before making an investment decision.
The securities offered have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent
registration or any applicable exemption from the registration
requirements. This news release does not constitute an offer to
sell or the solicitation of an offer to buy securities nor will
there be any sale of such securities in any state in which such
offer, solicitation or sale would be unlawful.
SOURCE Harvest Portfolios Group Inc.