CIX Split Corp. Announces Proposed Changes to its Investment Objectives, Strategies and Restrictions

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[{"type":"text","content":"\n\n\n\nTSX Symbol: CXC, CXC.PR.A\n\n\nTORONTO, Nov. 18 /CNW/ - CIX Split Corp. (the "Corporation") announced\ntoday that it will seek the approval of its shareholders to change the\ninvestment objectives, strategies and restrictions of the Corporation (the\n"Mandate Change") to reflect that the Corporation will invest substantially\nall of its assets in common shares of the corporate successor ("CI Financial")\nto CI Financial Income Fund (the "Income Fund") if the Income Fund is\nsuccessful in converting to a corporation. On October 15, 2008, the Income\nFund announced its intention to convert its structure from an income trust to\na corporation at the end of 2008, subject to receipt of all necessary\nunitholder, court and other approvals.\n\n\nCurrently, the Corporation has invested part of its assets in trust units\nof the Income Fund and the balance of its assets in a portfolio of common\nshares of Canadian public companies which, under a forward purchase and sale\nagreement, the Corporation has agreed to sell to a counterparty for a purchase\nprice calculated by reference to the market value of a reference number of\ntrust units of the Income Fund. As part of the Mandate Change, the Corporation\nalso will complete the early settlement of the sale of its common share\nportfolio to the counterparty. The Corporation will invest the proceeds from\nsuch sale in common shares of CI Financial.\n\n\nThe Mandate Change also will include deleting from the Corporation's\ninvestment objectives respecting its Class A Shares the reference to targeted\nmonthly cash distributions. The Corporation is precluded by the terms of the\nClass A Shares from paying distributions thereon when the net asset value per\nunit (one Class A Share and one Priority Equity Share, together) is equal to\nor less than $15.00. Due to prevailing market conditions, it is no longer\nrealistic for the Corporation to pursue an objective of targeted monthly cash\ndistributions on the Class A Shares.\n\n\nIf the Mandate Change is not approved, the Corporation also will seek the\napproval of its shareholders to terminate the Corporation on or about December\n31, 2008 since the Corporation will be unable to comply with its current\ninvestment objectives, strategies and restrictions after the Income Fund\ncompletes its reorganizati...

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