2013-01-07 22:53:36 -
TORONTO, ONTARIO -- (Marketwire) -- 01/07/13 -- Front Street Flow-Through 2011-I Limited Partnership and Front Street Flow-Through 2011-II Limited Partnership (the "Partnerships") announced that they will be proceeding with the direct and indirect tax-deferred transfer of the assets of the Partnerships (the "Mutual Fund Rollover Transaction") into the Front Street Resource Class ("Front Street Resource Class"), a fund class of Front Street Mutual Funds Limited. The transaction will take place on or about January 31, 2013 after the close of business. In exchange for the assets, Series B Shares of Front Street Resource Class will be issued to the Partnerships and then distributed to individual limited partners. The Partnerships will be dissolved on or about February 8, 2013.
Redemption Option: Series B Shares of Front Street Resource Class are in book-entry only form. Consequently, limited partners of the Partnerships who want to redeem their Series B Shares must contact their brokers or dealers to exercise the redemption option. When shares are redeemed, Front Street Resource Class will send the shareholder the proceeds within three business days after the calculation date for the net asset value used in establishing the redemption price. The Series B Shares issued under the Mutual Fund Rollover Transaction may be redeemed through FundServ after the rollover, once the individual holders' investment advisor has reconciled the positions with FundServ.
Front Street Resource Class: Front Street Resource Class is a fund class of Front Street Mutual Funds Limited which is a mutual fund corporation incorporated under the laws of Canada, with Gary Selke as its Chief Executive Officer. Its head office is located at 33 Yonge Street, Suite 600, Toronto, Ontario. Front Street Resource Class securities are sold under a continuous offering prospectus. Front Street Resource Class is a reporting issuer for securities law purposes in all provinces and territories of Canada.
Front Street Resource Class is advised by Front Street Investment Management Inc. (the "Portfolio Advisor"), the same investment advisor that has advised the Partnerships. Front Street Resource Class's investment objective is to maximize capital appreciation by investing in small and medium-sized business entities in a range of natural resource sector industries, including base and precious metal mining and exploration and in energy-related industries. The Portfolio Advisor will assist Front Street Resource Class in selecting investments primarily in equity and equity-related securities, although Front Street Resource Class may also invest in other securities, including preferred shares, of such resource issuers, including junior resource issuers, with the objective of achieving capital appreciation for shareholders.
Front Street Resource Class will not charge a fee or commission when Series B Shares are issued under the Mutual Fund Rollover Transaction and will not charge redemption fees. Front Street Capital 2004, the Manager of Front Street Resource Class, will be entitled to an annual management fee equal to 1.5% of net asset value of the Series B Shares and will be eligible for a performance fee.
Fund Shares: Shares of Front Street Resource Class are categorized into series, being Series A Shares, Series B Shares, Series F Shares, Series L Shares and Series X Shares. Only Series B Shares are being issued under the Mutual Fund Rollover Transaction. Series B shares will be distributed on a "no load" basis. The issue price of the shares is based on the Net Asset Value per share determined in accordance with the Mutual Fund Rollover Transaction. Front Street Resource Class will not issue share certificates, but will send shareholders a confirmation statement relating to all purchases and redemptions of shares within fifteen days of a transaction.
Additional Information: The continuous offering prospectus of Front Street Resource Class is available to limited partners of the Partnerships through their broker or by calling Front Street at 1-800-513-2832. It is also available on SEDAR at www.sedar.com.
Front Street Capital 2004
416-364-1990 or 800-513-2832 email@example.com