TORONTO,
Sept. 9, 2013 /CNW/ - Middlefield
Group, on behalf of Global Dividend Growers Income Fund (the
"Fund"), is pleased to announce that it has completed an additional
offering of 2,304,143 units of the Fund at a price of $10.04 per unit for gross proceeds of
$23.1 million. Pricing was
established so as to be at least equal to the net asset value per
unit plus agents fees and expected expenses of the offering on the
date of pricing to ensure that existing unitholders are not
diluted.
Global Dividend Growers Income Fund is designed
to provide investors with a low-cost investment in global issuers
that have exhibited a history of strong dividend growth. The net
proceeds of the offering will be invested by the Fund in accordance
with its investment objectives which are to:
(i) provide holders of units with stable monthly
cash distributions and to grow distributions over time, and
(ii) enhance long-term total return through
capital appreciation of the Fund's investment portfolio,
through an investment strategy which combines
passive and active portfolio management and entails investing
primarily in securities of global, including Canadian and U.S.,
issuers which have exhibited strong dividend growth.
The Fund's target distribution amount for the
period ending March 31, 2014 is
$0.05 per unit per month
(corresponding to an annualized distribution of $0.60 per unit per annum).
Middlefield Capital Corporation acts as the
investment advisor to the Fund.
Units trade under the TSX symbol "GDG.UN".
The syndicate of agents was co-led by CIBC
and RBC Capital Markets and included Scotiabank, BMO Capital
Markets, National Bank Financial Inc., TD Securities Inc.,
Canaccord Genuity Corp., Macquarie Private Wealth Inc., Raymond
James Ltd., GMP Securities L.P., Mackie Research Capital
Corporation, Middlefield Capital Corporation and Dundee Securities
Ltd.
Certain statements in this press release
may constitute forward-looking information, including statements
regarding cash-on-cash yield. Forward-looking statements are
subject to various risks and uncertainties that could cause
estimates to differ materially from the expectations expressed,
including the risk that the per unit distributions may decrease
below the amount used in calculating the yield, which could occur
for various reasons beyond the control of the Fund such as a
decrease in the distributions paid by the issuers of securities
included in the Fund's portfolio or a change in general economic
conditions. The forward-looking information contained in this press
release constitutes the Fund's current estimate, as of the date of
this press release, with respect to the matters covered hereby.
Investors and others should not assume that any forward-looking
statement contained in this press release represents the Fund's
estimate as of any date other than the date of this press release.
Unless required by applicable securities law, the Fund does not
intend and does not assume any obligation to update these
forward-looking statements.
SOURCE Global Dividend Growers Income Fund