Harvest launches Big Pharma Split Corp.

November 24, 2017

The company invests in a portfolio of equities of large North American pharmaceutical companies

Oakville, Ont.-based Harvest Portfolios Group Inc. announced Friday that Big Pharma Split Corp. has completed its initial public offering of 1,360,000 preferred shares and 1,360,000 Class A shares for combined gross proceeds of $34 million.

Both preferred and Class A shares began trading on the Toronto Stock Exchange Nov. 24.

Big Pharma Split Corp. will invest in an initially equally-weighted portfolio of 10 issuers consisting of equity securities selected from a universe of pharmaceutical issuers that are listed on a North American exchange, pay a dividend and have options in respect of its equity securities that are sufficiently liquid to permit Harvest to write options in respect of such securities.

The portfolio will be comprised mainly of the largest pharmaceutical issuers in the investable universe.

The investment objectives for the preferred shares are to provide unitholders with fixed cumulative preferential quarterly cash distributions of 12.5¢ per preferred share (50¢ per year, or 5% per year on the $10 issue price) until Dec. 31, 2022, and to return of the original issue price to holders on the maturity date.

The investment objectives for the Class A shares are to provide unitholders with regular monthly cash distributions aimed to be 10.31¢ per Class A share ($1.2372 per year or 8.25% per year on the $15 issue price) and with the opportunity for growth in net asset value per Class A share.

Harvest is the manager, portfolio manager and promoter of Big Pharma Split Corp.

Over the next 30 days, Big Pharma Split Corp. is granting agents of the offering an over-allotment option to buy up to an additional 204,000 preferred shares and up to an additional 204,000 Class A shares.

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Disclaimer

You will usually pay brokerage fees to your dealer if you purchase or sell units of the Fund(s) on the TSX. If the units are purchased or sold on the TSX, investors may pay more than the current net asset value when buying units of the Fund(s) and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning units of an investment fund. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or  “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.

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