Prospectus excerpt: Canadian Life Companies Split Corp. (the ‘‘Company’’), a mutual fund corporation incorporated under the laws of the Province of Ontario, is offering up to 12,000,000 Preferred Shares and 12,000,000 Class A Shares (collectively, the ‘‘Offering’’) under this prospectus at a price of $10.00 per Preferred Share and $15.00 per Class A Share.
The Company has been created to provide investors with an opportunity to invest in the Canadian life insurance sector, which Quadravest Capital Management Inc. (‘‘Quadravest’’) believes has the potential for growth, both on an absolute basis as well as in relation to U.S. life insurers. Prospective purchasers may pay the purchase price for Preferred Shares or Class A Shares in cash. In addition, the purchase price of a ‘‘Unit’’ consisting of a Preferred Share and a Class A Share may be paid pursuant to an exchange (the ‘‘Exchange Option’’) of freely tradeable common shares of any of the Portfolio Companies (as defined below). A purchaser utilizing the Exchange Option who is a resident of Canada for purposes of the Income Tax Act (Canada), who holds the common shares of a Portfolio Company as capital property and who enters into a joint election with the Company available in certain circumstances may obtain a full or partial tax-deferred rollover for Canadian tax purposes. See ‘‘Exchange Option’’, ‘‘Canadian Federal Income Tax Considerations’’ and ‘‘Procedure for Tax Election’’.