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Augen announces Exchange Offer Liquidity Transaction for LP 2003
Augen announces Exchange Offer Liquidity Transaction for LP 2003.
About this update from Gensource Potash Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Nov. 8 /CNW/ - Augen Capital Corp. (the \"Augen\") (TSX-V: AUG) is\npleased to announce that Augen Resource 2 Balance Fund Inc. (\"R2B\"), a private\nmutual fund corporation, has proposed a tax-deferred offer to acquire all the\nunits of Augen Limited Partnership 2003 (\"LP 2003\"), as at valuation date\nOctober 31, 2005. The proposed transaction is subject to unitholder approval.\nThe LP 2003 Net Asset Value (\"NAV\") per unit as at October 31, 2005 is\n$64.86 and is subject to independent valuation review yet to be conducted by\nR2B. Factoring in a 100% investment tax deduction, a federal tax credit of up\nto 15%, and varying provincial credits, the after-tax or break-even NAV for an\nOntario resident is approximately $61 per unit. This translates into\ncumulative after-tax investment performance of 6.3% since the final close of\npartnership subscriptions in December 2003.\nThe exchange value is yet to be determined however based on a NAV per\nunit of $9.07 as at September 30, 2005, unitholders would receive 7.15 units\nin R2B for every unit held in LP 2003.\nUnitholders in LP 2003 who exchange into units of R2B will be permitted\nto redeem, subject to certain conditions including liquidity of R2B, on\nMarch 31st, 2006. It is expected that R2B will increase the NAV calculation\nfrequency to monthly as part of this proposed exchange offer.\nAlternatively, unitholders in LP 2003 electing to invest in Augen Limited\nPartnership 2005 (\"LP 2005\") will be permitted to redeem on closing of the\nproposed R2B exchange offer, subject to certain conditions including a maximum\nof $3,000,000 available for reinvestment in LP 2005, which may be increased at\nthe discretion of the General Partner of LP 2005.\nThe final close of Augen LP 2005 is November 30th, 2005 and the maximum\noffering is $15,000,000. The exchange offer of LP 2003 by R2B is scheduled to\nclose in December 2005 and no later than January 2006.\nAugen Limited Partnership 2004-1 is among the top performing flow-through\nproducts in the industry with a September 30, 2005 NAV per unit of $110.\nFactoring in a break-even NAV of $63 per unit for an Ontario resident, this\ntranslates into cumulative after-tax investment performance of 74.6% to date.\n\nAbout Augen Capital\nBased in Toronto, Augen Capital is a merchant bank specializing in the\nfinancing of, a...