TORONTO, Sept. 11, 2020 /CNW/ – Trez Capital Senior Mortgage Investment Corporation (TSX:TZS) (the “Company“) announced today that its board of directors has declared a special distribution of $0.82 per Class A share of the Company (the “Special Distribution“). The Special Distribution, which constitutes a return of capital pursuant to the winding-up of the Company’s business as approved by Shareholders on June 16, 2016, will be paid on October 14, 2020 to holders of Class A shares of record at the close of business on September 30, 2020. As of September 11, 2020, there were 7,318,067 Class A shares outstanding.
The Special Distribution payment is not subject to any condition, will be made in cash and will be subject to the “Due Bill” trading requirements mandated by the Toronto Stock Exchange (the “TSX“).
Because the amount of the Special Distribution represents a distribution of greater than 25% of the market value of the Class A shares on the declaration date, the TSX has required that the Class A shares will trade on a “Due Bill” basis during the period (the “Due Bill Period“) from and including September 29, 2020 until the close of trading on October 14, 2020 (the “Payment Date“).
This means that buyers of Class A shares during the Due Bill Period will receive the Special Distribution payment, provided they continue to be holders of the applicable Class A shares on the Payment Date.
The Class A shares will commence trading on an ex-distribution basis (i.e., without an attached “Due Bill” entitlement to the Special Distribution) commencing the opening of trading on October 15, 2020 (i.e., the next trading day after the Payment Date). The Due Bill redemption date will be October 16, 2020. As a result of the Class A shares trading on a Due Bill basis during the Due Bill Period, those entitled to be paid the Special Distribution owing on the Due Bills should expect to receive that payment by the Due Bill redemption date of October 16, 2020.
About the Company
On June 16, 2016 the Shareholders of the Company approved the orderly wind-up of the Company. Under the orderly wind-up plan the Company will distribute the net proceeds through special distributions, the repurchase of shares pursuant to the normal course issuer bid, or otherwise.
SOURCE Trez Capital Senior Mortgage Investment Corporation
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