TORONTO – (BUSINESS WIRE) – CI Global Asset Management (“CI GAM”) today announced further details of the previously announced proposal for the merger (the “Merger”) of CI Galaxy Bitcoin Fund (TSX: BTCG), a closed-end mutual fund, CI Galaxy Bitcoin ETF ( TSX: BTCX), an exchange traded fund (the “Continuing ETF”) scheduled to be listed on the Toronto Stock Exchange (“TSX”) starting tomorrow, March 9, 2021.
If approved, BTCG shareholders will receive the corresponding dollar value of the shares in the ETF US dollar series of the Continuing ETF upon completion of the business combination. The proposed merger is expected to be taxable, is considered a tax disposition and may have tax consequences for the shareholders of BTCG.
CI GAM believes that the combination is in the best interests of investors as it will result in investors holding shares in an ETF that offers increased liquidity through continuous distribution. CI GAM expects BTCX, the Continuing ETF, to be an efficient way of accessing this asset class and allowing BTCG investors to capitalize on the potential economies of scale of an ETF. The costs and expenses associated with the merger will be borne by CI GAM and not by the funds. As previously announced, CI GAM will reduce BTCG’s management fee to BTCX’s once the Continuing ETF is listed on the TSX.
Under National Instrument 81-102 mutual funds, BTCG shareholders must approve the combination. In addition, the merger requires official approval. A meeting of shareholders will be held on April 26, 2021 and, if necessary, an adjourned meeting will be held on May 6, 2021. Holders of BTCG shares on March 17, 2021 are entitled to notification and voting at the meeting.
The notice and access document listing the merger will be sent to shareholders and the Management Information Circular will be available on or about March 24, 2021 at www.sedar.com and www.firstasset.com. The merger will take place on or around May 7, 2021. BTCG shareholders have the option of redeeming their shares prior to the merger if they do not wish to participate in the Continuing ETF.
BTCG’s independent review committee has reviewed the combination for potential conflicts of interest and made its positive recommendation after determining that the combination will produce a fair and reasonable outcome for BTCG.
Information on CI Global Asset Management
CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is available on the Internet at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and asset management services with total assets of approximately $ 231.8 billion as of January 31, 2021.
Commissions, subsequent commissions, management fees and expenses may be associated with an investment in mutual funds and exchange traded funds (ETFs). Please read the prospectus before investing. Important information on mutual funds and ETFs can be found in their respective prospectus. Mutual funds and ETFs are not guaranteed. Your values change frequently, and past performance may not be repeated. Typically, you pay brokerage fees to your dealer when you buy or sell shares in an ETF on recognized Canadian exchanges. If the Shares are bought or sold on these Canadian stock exchanges, investors may pay more than the current Net Asset Value when buying Shares in the ETF and may receive less than the current Net Asset Value when selling.
This announcement is intended as a general source of information and should not be construed as personal, legal, accounting, tax, or investment advice, or as endorsement or recommendation of any company or security discussed. Individuals may want to seek professional advice regarding a particular investment. Investors should consult their professional advisers before making any changes to their investment strategies.
Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend on or relate to future events or conditions, or contain words such as “may”, “will”, “should”, “may”, “may”. expect, “anticipate”, “intend”, “plan”, “believe” or “estimate” or other similar expressions. Statements that look into the future in a timely manner or contain anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set out in the FLS. FLS are not a guarantee of future performance and are, by their nature, based on numerous assumptions. Although the FLS contained herein are based on assumptions that CI Global Asset Management believes to be reasonable, CI Global Asset Management cannot guarantee that actual results will correspond to these FLS. The reader is cautioned to carefully review the FLS and not place undue reliance on the FLS. Unless required by law, no obligation or obligation to update or revise FLS is entered into, whether as a result of new information, future events or for any other reason.
CI Global Asset Management is a registered company name of CI Investments Inc.
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