TORONTO, Dec. 15,
2023 /CNW/ - Economic Investment Trust Limited (TSX:
EVT) (the "Company") announced today that upon the terms and
subject to the conditions of its substantial issuer bid (the
"Offer"), the Company has taken up and will pay for
36,231 common shares (the "Shares") that were validly
deposited and not withdrawn to the Offer at a price of $138.00 per Share.
The Shares to be purchased under the Offer represent an
aggregate purchase price of approximately $4,999,878 and 0.66% of the total number of
the Company's issued and outstanding Shares before giving effect to
the Offer. After giving effect to the Offer, the Company has
5,425,197 Shares issued and outstanding.
An aggregate of 37,611 Shares were validly tendered and not
withdrawn pursuant to auction tenders at or below the purchase
price and purchase price tenders. Since the Offer was
oversubscribed, holders of Shares ("Shareholders") who made
auction tenders at or below the purchase price and purchase price
tenders had approximately 96.12% of their successfully tendered
Shares purchased by the Company (other than "odd lot" tenders,
which are not subject to proration).
Payment and settlement of the Shares purchased pursuant to the
Offer will be effected by Computershare Investor Services Inc. (the
"Depositary") in accordance with the settlement procedures
described in the Offer Documents. Any Shares not purchased,
including Shares not purchased as a result of proration or Shares
that were not validly tendered, will be returned to the tendering
Shareholder promptly by the Depositary.
For Canadian federal income tax purposes, a deemed dividend
arises on the repurchase of Shares under the Offer. To assist
Shareholders in determining the Canadian income tax consequences of
the Offer, the Company has determined that for purposes of the
Income Tax Act (Canada)
(the "Tax Act"), the paid-up capital per Share is estimated
to be approximately $36.45 at
the time of repurchase under the Offer. Shareholders should review
the issuer bid circular dated November 7,
2023 for more information, including information about the
tax treatment of deemed dividends (refer to Section 13 "Income
Tax Considerations – Certain Canadian Federal Income Tax
Considerations"). The Company designates the entire amount of
the deemed dividend arising from its repurchase of Shares under the
Offer as an "eligible dividend" for purposes of the Tax Act.
The "specified amount" for purposes of subsection 191(4) of the
Tax Act in respect of each Share is $136.00.
Details of the Offer are described in the offer to purchase and
issuer bid circular dated November 7,
2023, as well as the related letter of transmittal and
notice of guaranteed delivery (the "Offer Documents"),
copies of which were filed and are available on SEDAR+ at
www.sedarplus.ca.
This press release is for informational purposes only and does
not constitute an offer to buy or the solicitation of an offer to
sell the Company's Shares.
About Economic Investment Trust
Limited
The Company is a closed-end investment corporation that trades
on the Toronto Stock Exchange. The Company has always been an
investment vehicle for long-term growth through investment in
common equities, as management believes that over long period of
time, common equities, as an asset class, will outperform
fixed-income instruments or balanced funds. The investment
objective is to earn an above-average rate of return, primarily
through long-term capital appreciation and dividend income. The
equity investments in the portfolio reflect investment
opportunities worldwide. For more information, please visit:
https://www.evt.ca/.
Forward Looking
Statements
This press release may contain forward-looking information
within the meaning of applicable securities regulation. The words
"may", "will", "would", "should", "could", "expects", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "predicts", "likely" or "potential" or the negative or
other variations of these words or other comparable words or
phrases, are intended to identify forward-looking statements. These
statements include, without limitation, statements regarding the
settlement of purchases under the Offer. The Company believes the
expectations reflected in the forward-looking statements in this
press release are reasonable but no assurance can be given that
these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties that may cause
the results or events mentioned in this press release to differ
materially from those that are discussed in or implied by such
forward-looking information. These risks and uncertainties include,
but are not limited to, general, local economic, and business
conditions. All forward-looking information in this press release
speaks as of the date hereof. The Company does not undertake to
update any such forward-looking information whether as a result of
new information, future events or otherwise. Additional information
about these assumptions and risks and uncertainties is disclosed in
filings with securities regulators filed on SEDAR+
(www.sedarplus.ca).
SOURCE Economic Investment Trust Limited