/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES./
TORONTO, July 2, 2021 /CNW Telbec/ - (TSX: PIC.A) (TSX:
PIC.PR.A) – Premium Income Corporation (the "Fund") is pleased to
announce it has established an at-the-market equity program
("ATM Program") that allows the Fund to issue shares of the Fund to
the public from time to time, at the Fund's discretion, effective
until September 8, 2022, unless
terminated prior to such date by the Fund. Any Class A Shares or
Preferred Shares sold in the ATM Program will be sold through the
Toronto Stock Exchange (the "TSX") or any other marketplace in
Canada on which the Class A Shares
and Preferred Shares are listed, quoted or otherwise traded at the
prevailing market price at the time of sale. Sales of Class A
Shares and Preferred Shares through the ATM Program will be made
pursuant to the terms of an equity distribution agreement dated
July 2, 2021 (the "Equity
Distribution Agreement") with National Bank Financial Inc. (the
"Agent").
Sales of Class A Shares and Preferred Shares will be made by way
of "at-the-market distributions" as defined in National Instrument
44-102 Shelf Distributions on the TSX or on any marketplace
for the Class A Shares and Preferred Shares in Canada. Since the Class A Shares and Preferred
Shares will be distributed at the prevailing market prices at the
time of the sale, prices may vary among purchasers during the
period of distribution. The ATM Program is being offered pursuant
to a prospectus supplement dated July 2,
2021 to the Fund's short form base shelf prospectus dated
August 7, 2020. The maximum gross
proceeds from the issuance of the shares will be $50,000,000. Copies of the prospectus supplement
and the short form base shelf prospectus may be obtained from your
registered financial advisor using the contact information for such
advisor, or from representatives of the Agent and are available on
SEDAR at www.sedar.com.
The volume and timing of distributions under the ATM Program, if
any, will be determined at the Fund's sole discretion. The Fund
intends to use the proceeds from the ATM Program in accordance with
the investment objectives and investment strategies of the Fund,
subject to the investment restrictions of the Fund.
The Fund invests in a portfolio consisting principally of common
shares of Bank of Montreal, The
Bank of Nova Scotia, Canadian
Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank. To
generate additional returns above the dividend income earned on the
Fund's portfolio, the Fund may selectively write covered call and
put options in respect of some or all of the common shares in the
Fund's portfolio. The manager and investment manager of the Fund is
Strathbridge Asset Management Inc.
John Germain, Senior VP &
CFO
Certain statements included in this news release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "intend", "will" and similar
expressions to the extent they relate to the Fund. The
forward-looking statements are not historical facts but reflect the
Fund's current expectations regarding future results or events.
These forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results or events to
differ materially from current expectations. Although the Fund
believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not
guarantees of future performance and, accordingly, readers are
cautioned not to place undue reliance on such statements due to the
inherent uncertainty therein. The Fund undertakes no obligation to
update publicly or otherwise revise any forward-looking statement
or information whether as a result of new information, future
events or other such factors which affect this information, except
as required by law.
A short form base shelf prospectus and prospectus supplement
containing important detailed information about the securities
being offered has been filed with securities commissions or similar
authorities in each of the provinces of Canada. Copies of the short form base shelf
prospectus may be obtained from the Agent. Investors should read
the short form base shelf prospectus and the prospectus supplement
before making an investment decision. There will not be any sale or
any acceptance of an offer to buy the securities being offered
until the prospectus supplement has been filed with the securities
commissions or similar authorities in each of the provinces of
Canada.
Commissions, trailing commissions, management fees and
expenses all may be associated with mutual fund investments. Please
read the prospectus before investing. Mutual funds are not
guaranteed, their values change frequently and past performance may
not be repeated.
The securities offered have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent
registration or any applicable exemption from the registration
requirements. This news release does not constitute an offer to
sell or the solicitation of an offer to buy securities nor will
there be any sale of such securities in any state in which such
offer, solicitation or sale would be unlawful.
SOURCE Premium Income Corporation