TORONTO--(BUSINESS WIRE)--DREAM IMPACT TRUST (“Dream Impact” or the “Trust”) (TSX: MPCT.UN) today confirmed that the previously announced consolidation (“Unit Consolidation”) of all the issued and outstanding units of the Trust (“Units”) on the basis of one (1) post-consolidation Unit for every four (4) pre-consolidation Units became effective today. The Unit Consolidation was previously authorized by the unitholders of the Trust at the annual meeting of the Trust held on June 6, 2023. The Units are expected to begin trading on a post-consolidation basis on the Toronto Stock Exchange (the “TSX”) at markets open on June 20, 2023 under the same trading symbol “MPCT.UN”. The new CUSIP and ISIN numbers for the post-Consolidation Units are 26154L128 and CA26154L1287.
At markets close as of June 15, 2023, there were 68,538,274 Units issued and outstanding. The exact number of outstanding Units after the Unit Consolidation is 17,134,554, after taking into account the elimination of fractional Units. No fractional Units were issued in connection with the Unit Consolidation. All fractions of post-Consolidation Units were rounded down to the nearest whole number.
On June 15, 2023, registered unitholders were mailed a letter of transmittal from the Trust’s transfer agent, Computershare Trust Company of Canada, providing instructions regarding how to exchange their existing unit certificates representing pre-consolidation Units for Direct Registration advice statements or unit certificates representing the post-consolidation Units to which they are entitled as a result of the Unit Consolidation. Until surrendered to the transfer agent, each unit certificate representing pre-consolidation Units will be deemed to represent the number of new whole post-consolidation Units to which the holder is entitled as a result of the Unit Consolidation. Non-registered unitholders holding their Units through a bank, broker or other nominee are encouraged to contact their nominee for further information.
Registered holders of the Trust’s 5.50% Convertible Unsecured Subordinated Debentures due 2026 (the “5.50% Debentures”) and the Trust’s 5.75% Convertible Unsecured Subordinated Debentures due 2027 (the “5.75% Debentures”) will be given notice of the effect of the Unit Consolidation pursuant to the Trust Indentures dated August 3, 2021 and June 9, 2022. On and after today, the 5.50% Debentures are convertible into Units at a conversion price of $31.02 per unit, being a conversion rate of approximately 32.2373 units for each $1,000 principal amount of 5.50% Debentures. On and after today, the 5.75% Debentures are convertible into Units at a conversion price of $32.00 per unit, being a conversion rate of approximately 31.2500 units for each $1,000 principal amount of 5.75% Debentures.
The exercise prices and the number of Units issuable upon the exercise or deemed exercise of any deferred units or other convertible or exchangeable securities of the Trust have been automatically proportionately adjusted based on the consolidation ratio to reflect the Unit Consolidation.
As a result of the Unit Consolidation, the current monthly distributions of the Trust of $0.01333 on a pre-consolidation basis is expected to be adjusted to $0.05333 per Unit on a post-consolidation basis, representing annualized distributions of $0.64 per Unit on a post-consolidation basis.
Further details on the Unit Consolidation are contained in the management information circular of the Trust dated April 21, 2023 (the “Circular”), which has been filed and is available under the Trust’s profile on SEDAR at www.sedar.com. Please review the Circular for the specific terms and conditions of the Unit Consolidation. The letter of transmittal will also be available under the Trust’s SEDAR profile at www.sedar.com.
About Dream Impact Trust
Dream Impact is an open-ended trust dedicated to impact investing. Dream Impact's underlying portfolio is comprised of exceptional real estate assets reported under two operating segments: development and investment holdings, and recurring income, that would not be otherwise available in a public and fully transparent vehicle, managed by an experienced team with a successful track record in these areas. The objectives of Dream Impact are to create positive and lasting impacts for our stakeholders through our three impact verticals: environmental sustainability and resilience, attainable and affordable housing, and inclusive communities, while generating attractive returns for investors. For more information, please visit: www.dreamimpacttrust.ca
Forward Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation, including, but not limited to, statements with respect to the timing and completion of the Unit Consolidation, distributions payable by the Trust as well as statement relating to our future unitholder base. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: adverse changes in general economic and market conditions; risks associated with unexpected or ongoing geopolitical events, including disputes between nations, terrorism or other acts of violence, and international sanctions; inflation; and the risk of adverse global market, economic and political conditions and health crises. Our objectives and forward-looking statements are based on certain assumptions with respect to our markets, including that the general economy remains stable; the gradual recovery and growth of the general economy continues over 2023; and that no unforeseen changes in the legislative and operating framework for our business will occur. Additional information about these assumptions and risks and uncertainties is disclosed in the Trust’s filings with securities regulators filed on the System for Electronic Document Analysis and Retrieval (www.sedar.com), including its latest annual information form and management’s discussion and analysis. These filings are also available at the Trust’s website at www.dreamimpacttrust.ca.
All forward-looking information in this press release speaks as of the date of this press release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.
