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Toronto, December 1, 2021 (Global News Agency) – (Toronto Stock Exchange:SBC, SBC.PR.A)) Brompton Split Banc Corp. (the “Company”) is pleased to announce the details of the previously announced Class A share split (“Share Split”) and provide the latest news regarding the simultaneous private placement of preferred shares (“Private Placement”). Placement”). The approval of the Toronto Stock Exchange (“TSX”) is still required for share splits and private placements.
The company is pleased to announce that pursuant to the share split, class A shareholders registered at the close of business on December 14, 2021 will receive 25 additional class A shares for every 100 class A shares held. After the share split, Class A shareholders will continue to receive the current monthly distribution target of US$0.10 per A share. Therefore, the share split will result in an overall increase in the amount of distributions paid to Class A shareholders by approximately 25%. The company provides a dividend reinvestment plan for Class A shareholders who wish to reinvest in dividends and achieve compound growth gains, free of commissions.
According to the private placement, 3,164,203 preferred shares were provided to investors at a price of US$10.10 per share. Therefore, after the share split, the number of Class A shares and preferred shares in circulation will be equal. The private placement is scheduled to be completed on December 14, 2021. After the completion of the share split and private placement, it is expected that the preferred shares will have downside protection against the impact of the company’s investment portfolio value falling by approximately 57%.(1)
In the past 10 years, the annual total return of Class A stocks based on net asset value was 17.8%, which exceeded the S&P/TSX upper limit financial index by 5.1% and the S&P/TSX composite index by 9.0% per year.(2) Since its establishment, Class A shareholders have received a cash distribution of US$18.75 per A share.
Based on the net asset value, the total annual return of preferred stocks in the past 10 years is 4.9%, which exceeds the S&P/TSX Preferred Stock Index by 1.5% per year, with low volatility.(2)
The company invests with roughly equal weights in a portfolio of common stocks of the six largest Canadian banks (currently Royal Bank of Canada, Bank of Nova Scotia, National Bank of Canada, Bank of Canada) (“Portfolio”) Toronto-Dominion Bank , Canadian Imperial Bank of Commerce and Bank of Montreal). In addition, the company can hold up to 10% of the total portfolio assets in investments in global financial companies to increase diversification and return potential.
About Brompton Fund
Brompton Funds Limited (“Brompton”) was established in 2000 and is an experienced investment fund manager that provides income-focused investment solutions, including TSX listed closed-end funds and exchange-traded funds.For more information, please contact your investment advisor, call Brompton’s investor relations hotline 416-642-6000 (toll free 1-866-642-6001), and send an email to info@bromptongroup.com Or visit our website www.bromptongroup.com.
(1) Based on the net asset value of Class A shares on November 25, 2021, it is used to determine the share split ratio.
(2) Please refer to the standard performance data sheet below.
| Brompton Split Banc Corp. The compound annual net asset value returns to October 31, 2021 |
1 year | 3 years |
The full story can be found on Benzinga.com
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