WesternOne Equity Income Fund proposes conversion to public company

WesternOne Equity Income Fund is proposing its conversion to a public company under a Plan of Arrangement pursuant to which the unitholders will exchange their units of the Fund for shares of a new CBCA corporation, and the Fund and the subsidiary trust of the Fund will be wound up.

Somewhat unusually, the Circular for the conversion also provides for the adoption of a unitholders' rights plan.  The rights issued under this plan are all cancelled as a preliminary step in the Plan of Arrangement - then following the termination of the Fund, the rights plan is deemed under the Plan of Arrangement to have been amended so that it applies to the new public company.  (The rollover in s. 85.(8) would not apply if the unitholders received rights under the rights plan as part of the consideration for their Fund units.)

As the s. 85.1(8) rollover expires at year end there may be more of these transactions.

Neal Armstrong.  See summary of WesternOne Circular for conversion to a public company.