Mulvihill Capital Management Inc. Announces Special Meeting of World Financial Split Corp.

TORONTO, May 15, 2024 (GLOBE NEWSWIRE) -- (TSX: WFS) Mulvihill Capital Management Inc. (the “Manager”), the manager of World Financial Split Corp. (the “Fund”) announced today that the board of directors of the Fund has approved a proposal to change the investment objectives, strategy and restrictions of the Fund and to amend the articles of the Fund, all as more particularly described in the management information circular (the “Circular”) for the special meeting (the “Meeting”) of the Fund’s shareholders (the “Shareholders”).

The purpose of the Meeting is to consider and vote upon a special resolution to reposition and recapitalize the Fund to enhance its ability to meet its investment objectives going forward by making the following changes. In this regard, the Fund proposes to change the following (collectively, the “Proposed Amendments”):

• the investment objectives, strategy and restrictions of the Fund to expand and diversify the portfolio of equity securities to global equity securities selected by the Manager and increase the dividend on the Preferred Shares to $0.0625 per month (7.5% on the original $10.00 issue price) and reinstate the Class A Share distribution (targeted at 12.0% per annum payable monthly on the consolidated Class A Share net asset value per share of approximately $8.00 per share);
• the articles of the Fund to:
  • change the name of the Fund to “Premium Global Income Split Corp.”;
  • consolidate the Class A Shares of the Fund in order to reset the net asset value per Class A Share to approximately $8.00 per share;
  • change the existing Preferred Shares of the Fund into a number of Class A Shares and a lesser number of the same class of Preferred Shares to be determined based on the number of shares surrendered pursuant to the Special Retraction Right referred to below (for example, assuming a 4:1 Class A Share consolidation, the Manager would expect 100 Preferred Shares to be exchanged into approximately 41 Class A Shares and 66 Preferred Shares with a value initially equal to the value of the Preferred Shares so exchanged. The exact numbers into which such shares are proposed to be changed shall be announced on June 17, 2024);
  • extend the Termination Date of the Fund from June 30, 2025 to June 30, 2029 and provide the directors of the Fund with the ability to extend the Termination Date for successive five year terms;
  • eliminate the $15.00 net asset value per Unit dividend threshold on Class A Shares;
  • provide holders of Class A Shares and Preferred Shares who do not wish to continue their investment in the Fund with a special retraction right (the “Special Retraction Right”) to enable such Shareholders to retract their shares on June 28, 2024 on the same terms that would have applied had the Fund redeemed all Shares as originally contemplated for June 30, 2025 and provide that the Shareholders who wish to exercise the Special Retraction Right must give notice that they wish to exercise such right on or prior to June 14, 2024; and
  • create an unlimited number of new classes of shares, issuable in an unlimited number of series and authorize the directors of the Fund to determine the rights, privileges and restrictions attaching to each such series.