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Mutual Fund Rollover Transaction Complete, October 21, 2011 - Maple Leaf Short Duration 2010 Flow-Through LP
October 21, 2011
TORONTO, ONTARIO, October 21, 2011 – Maple Leaf Short Duration 2010 Flow-Through Limited Partnership (the “Partnership” CUSIP 56531A107) has completed a transaction (“Liquidity Transaction”) to which the assets of the Partnership (the “Assets”) transferred to the Maple Leaf Resource Class mutual fund (the “Mutual Fund” and or “CDO100”) of Maple Leaf Corporate Funds Ltd., an open-ended mutual fund corporation, in exchange for Resource Class - Series A shares of the Mutual Fund.
The transfer was on a tax deferred exchange basis and therefore no capital gains tax is payable.
Investors can elect to hold their Mutual Fund shares for long term growth and capital appreciation, switch tax-deferred into the Maple Leaf Income Class mutual fund for regular income and growth, or redeem their Mutual Fund shares for cash. Investors may have a capital gain when the Mutual Fund shares are redeemed.
There will be no fees charged on either the rollover to the Mutual Fund or on redemption of the Mutual Fund shares.
Once the Mutual Fund shares that the Partnership will receive as consideration for the transfer of the Assets are distributed to the Limited Partners, the Partnership will be dissolved.
The general partner of the Partnership (the “General Partner”) implemented this Liquidity Transaction in accordance with the limited partnership agreement (the “Partnership Agreement”) that governs the Partnership. This Liquidity Transaction has been mutually agreed to by the General Partner and the Mutual Fund and joint elections will be made to effect the transfer on a tax-deferred basis.
The effective date of the rollover is October 21, 2011. The Mutual Fund Shares will be distributed to the Partners on a pro rata basis and thereafter the Partnership will be dissolved. The Partnership had a final net asset value of $13.37 per Unit. The net asset value per Mutual Fund Share at the time of the rollover was $10.00. The after-tax return on at-risk capital was -11.34% (includes tax savings from investment tax credits, CEE and other operating deductions at an assumed marginal tax rate of 45%).
REDEMPTION
The Mutual Fund shares are in book-entry only form. Partners who would like to redeem their Mutual Fund shares must contact their brokers or dealers to execute the redemption. Processing at the dealer level can be delayed after the rollover occurs, therefore transactions such as switches or redemptions may not be processed until the Mutual Fund shares have been credited to client accounts. Neither the Partnership nor the Mutual Fund will accept any liability for transactions in Mutual Fund Shares executed prior to dealer records being updated.
MAPLE LEAF SHORT DURATION 2010 FLOW-THROUGH LIMITED PARTNERSHIP
The Partnership was established to provide Limited Partners with a tax-assisted investment in a diversified portfolio of flow-through shares of resource companies with a view to achieving capital appreciation for Limited Partners. The principal business of the resource companies was oil and gas exploration, development and/or production and mining exploration, development and/or production.
Investors received tax deductions for 2010 of approximately 100% of the amount of their investment.
MAPLE LEAF CORPORATE FUNDS LTD.
The Mutual Fund is a mutual fund corporation authorized to issue an unlimited number of separate classes of shares of which the Maple Leaf Resource Class of shares is one. Each class of mutual fund shares is a separate mutual fund. The Corporation’s articles permit it to issue an unlimited number of mutual fund shares in each class in one or more series. The Corporation currently offers Series A shares of the Maple Leaf Resource Class and Series A shares of the Maple Leaf Income Class. The Corporation may, without notice to, or approval from, the existing shareholders of the Fund, create new mutual funds by distributing these classes of mutual fund shares to the public.
ADDITIONAL INFORMATION
Additional information about the Mutual Fund will be available in the Mutual Fund’s simplified prospectus, annual information form, management reports of fund performance and financial statements. You can obtain a copy of these documents at your request and at no cost by calling toll free 1-866-688-5750, or from your financial advisor, or by e-mailing info@mapleleaffunds.ca, or at www.mapleaffunds.ca
These documents and other information about the Mutual Fund, such as information circulars and material contracts, will also be available at SEDAR (the System for Electronic Document Analysis and Retrieval established by the Canadian Securities Administrators) at www.sedar.com.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information or assistance with respect to the Mutual Fund or the Limited Partnership, please contact:
CADO Investment Fund Management Inc.
609 Granville Street, Suite 808, Vancouver, BC V7Y 1G5
Tel: 604-684-5742 | Toll Free: 866-688-5750 | Fax: 604-684-5748
Email: info@mapleleaffunds.ca | Web: www.mapleaffunds.ca