Marret Resource adds requirement for annual redemption offer to its common share provisions

Marret Resource Corp., which is a TSX-listed public corporation engaged in lending to resource companies (and which does not appear to be a mutual fund corporation), is proposing to amend its articles to provide for an "annual liquidity right," i.e., an annual offer to redeem its common shares at a discount to NAV (assuming they are trading at least a 3% discount to NAV).  It’s rather like building a requirement for the making of periodic issuer bids into the articles.

The tax disclosure does not suggest any taxable preferred share issues, nor indicate that redemptions would give rise to deemed dividends.  The issued share capital in the financial statements suggests that the shares’ paid-up capital may also be higher than the current trading price.

Neal Armstrong.  Summary of Circular of Marret Resource Corp. for addition of annual redemption feature to its common shares under Other – Liquidity Program.