Harvest Portfolios Group Inc. Announces $9.3 million Overnight Offering for Big Pharma Split Corp.

Date

February 25, 2021

Date

February 25, 2021

Date

February 25, 2021

TORONTO, ONTARIO, February 25, 2021 – Harvest Portfolios Group Inc. (“Harvest”) is pleased to announce that Big Pharma Split Corp. (the “Company”) has completed the overnight marketing of 385,200 Preferred Shares and 385,200 Class A Shares of the Company for gross proceeds of $9,341,100.  The offering is being led by BMO Capital Markets, CIBC World Markets Inc. and Scotia Capital Inc. The sales period of the overnight offering has now ended. The offering is expected to close on or about March 4, 2021 and is subject to certain closing conditions including approval by the Toronto Stock Exchange.

The Preferred Shares were offered at a price of $10.50 per Preferred Share to yield 4.8% and the Class A Shares were offered at a price of $13.75 per Class A Share to yield 9.0%.

The closing price on the TSX of each of the Preferred Shares and the Class A Shares on February 24, 2021 was $10.52 and $13.99, respectively.

The net proceeds of the offering will be used to invest in an equally-weighted portfolio of ten issuers comprised of equity securities selected by Harvest from a universe of pharmaceutical issuers which includes:

     Eli Lilly and Company   |   Johnson & Johnson    |  Amgen Inc.  |   Novartis AG   |    Pfizer Inc.

AstraZeneca PLC  |  Sanofi SA   |    Merck & Co Inc.  |   Bristol-Myers Squibb Company   |  AbbVie Inc.

In order to seek to generate additional returns, Harvest may write call options each month in respect of some or all of the equity securities in the portfolio.

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.125 per Preferred Share ($0.50 per annum) until December 31, 2022 (the “Maturity Date”) 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 their holders with regular monthly cash distributions targeted to be $0.1031 per Class A Share ($1.2372 per annum) and with the opportunity for growth in net asset value per Class A Share.

Harvest is the manager, portfolio manager and promoter of the Company.

For additional information: Please visit www.harvestportfolios.com, e-mail [email protected] or call toll free 1-866-998-8298.

 

About Harvest Portfolios Group Inc.

Founded in 2009, Harvest is a Canadian Investment Fund Manager managing over $1.2 billion in assets for Canadian Investors. Harvest offers an innovative suite of exchange traded funds, mutual funds and publicly-listed structured fund products designed to satisfy the long-term growth and income needs of investors. We pride ourselves in creating trusted investment solutions that meet the expectations of our investors.

 

A prospectus supplement to the Company’s short form base shelf prospectus dated November 4, 2020 containing important detailed information about the Preferred Shares and the Class A Shares being offered will be filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the Securities Commissions or similar authorities in each of the provinces and territories of Canada.

Disclaimer

For Information Purposes Only. All comments, opinions and views expressed are of a general nature and should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies.

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.