PREMIUM INCOME CORPORATION ESTABLISHES AT-THE-MARKET EQUITY PROGRAM
/Not for distribution to
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
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.
This ATM Program replaces the prior ATM program established in
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 Fund may also purchase securities of public investment funds (including exchange traded funds and other funds managed by Mulvihill Capital Management Inc. ("Mulvihill") (provided that no more than 15% of the net asset value of the Fund may be invested in securities of other Mulvihill funds), that provide exposure to such common shares. The manager and investment manager of the Fund is Mulvihill.
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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
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
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