Exchange Bulletin
Purpose US Cash ETF (PSU.U) To Trade On Toronto Stock Exchange
Purpose US Cash ETF (the “Purpose ETF”) - An application has been granted for the original listing in the Non-Corporate Issuer category of 150,000 units (the “Units”) of the Purpose ETF, of which all will be issued and outstanding, and none of which will be reserved for issuance upon completion of an initial public offering.
The Units will be traded in U.S. funds. Accordingly, they will appear under the heading U.S. funds in newspapers and the Exchange’s Daily Record and Monthly Review.
Listing of the Units will become effective at 5:01 p.m. on Tuesday, February 23, 2016, as the offering will close prior to the opening on Wednesday, February 24, 2016. The Units will be posted for trading at the opening on Wednesday, February 24, 2016.
Units of the Purpose ETF are offered on a continuous basis and the Purpose ETF is entitled to issue an unlimited number of Units. Each Unit represents an equal beneficial interest in the Purpose ETF.
Registration of interests in, and transfer of Units the Purpose ETF will be effected through the book-entry only system administered by CDS Clearing and Depository Services Inc. Units of the Purpose ETF must be purchased, transferred and surrendered for exchange or redemption only through a CDS Participant. Unitholders of the Purpose ETF will not have the right to receive physical certificates evidencing their ownership of the Units.
Participating Organizations should note that all trades in the Purpose ETF will be on a T+1 settlement on a permanent basis.
Additional information on the Units may be found in the simplified prospectus dated October 15, 2015 (the “Prospectus”), which is available at www.SEDAR.com. Capitalized terms not otherwise defined are as defined in the Prospectus.
| Stock Symbol: "PSU.U" | CUSIP: 74640R 10 1 | Trading Currency: US$ |
| Designated Market Maker: | National Bank Financial Inc. |
| Other Markets: | None |
| Head Office Address: | 130 Adelaide Street West, Suite 1700 P.O. Box 83 Toronto, Ontario M5H 3P5 |
| Website: | www.purposeinvest.com |
| Telephone Number: | (416) 583-3850 |
| Fax Number: | (416) 583-3851 |
| Investor Relations: | Som Seif Tel: (416) 583-3856 info@purposeinvest.com -or- Scott Bartholomew Tel: (416) 583-3857 info@purposeinvest.com |
| Chief Financial Officer & Corporate Secretary: | Scott Bartholomew |
| Incorporation: | The Purpose ETF is an exchange-traded mutual fund established as a trust under the laws of the Province of Ontario pursuant to an amended and restated declaration trust dated October 7, 2013, governing the Purpose ETF, as amended and restated as of October 15, 2015. |
| Manager and Trustee: | Purpose Investments Inc. |
| Fiscal Year End: | December 31 |
| Nature of Business: | The Purpose ETF seeks to maximize U.S. dollar monthly income for shareholders while preserving capital and liquidity by investing primarily in high interest deposit accounts and high-quality money market securities denominated in U.S. dollars and generally with term to maturity not exceeding one year. |
| Transfer Agent & Registrar: | Equity Financial Trust Company at its principal office in Toronto. |
| Switching between ETF shares: |
Holders of ETF shares may switch ETF shares of one Corporate Class to ETF shares of another Corporate Class through the facilities of CDS by contacting their financial advisor or broker (a “Switch”). Initially, Switches will occur once a week on Wednesdays (“ETF switch date”) by delivering written notice to the Fund at least one business day prior to the ETF switch date and surrendering such ETF shares by 4:00 p.m. (Toronto time) on such date. Written notice must contain the name of the fund, the TSX ticker symbol of the fund and the number of ETF shares to be switched and the name of the fund and the TSX ticker symbol of the ETF shares of the fund the holder wishes to switch to. Purpose may, in its discretion, change the frequency of Switches from weekly to daily without notice. ETF shares of one fund may not be switched for unlisted mutual fund shares of any fund or vice versa. The number of ETF shares to be received upon a Switch will be equal to the NAV per ETF share on the ETF switch date (the “Switch NAV”) of the fund switched to, divided by the Switch NAV per ETF share of the fund switched from. No fractional ETF share will be issued. Instead, any remaining fractional ETF share will be redeemed at the Switch NAV. A Switch of ETF Shares from one fund to ETF Shares of a different fund will not constitute a disposition of ETF shares for the purposes of the Income Tax Act (Canada). The payment of cash on the redemption of fractional ETF shares will, however, result in a capital gain (or capital loss). Dealers or financial advisors may charge a fee of up to 2% of the value of ETF shares switched. |
| Distributions and Automatic Reinvestment: | The Purpose ETF expects to make a distribution, if any in U.S. dollars each month. Distributions will be reinvested in additional Units of the Purpose ETF Distributions are not guaranteed and may change from time to time at the discretion of the Manager. A Unitholder of the Purpose ETF wishing to receive their distributions in cash must contact their dealer. On an annual basis, the Purpose ETF will ensure that the net income and net realized capital gains of the Purpose ETF have been distributed to Unitholders to such an extent that the Purpose ETF will not be liable for ordinary income tax thereon. To the extent that the Purpose ETF has not distributed the full amount of its net income or net capital gains in cash in any year, the difference between such amount and the amount actually distributed by the Purpose ETF will be paid as a “reinvested distribution”. Reinvested distributions, net of any required withholding tax, will be reinvested automatically in additional Units of the Purpose ETF at a price equal to the Net Asset Value per Unit of the Purpose ETF and the Units of the Purpose ETF will be immediately consolidated such that the number of outstanding Units of the Purpose ETF following the distribution will equal the number of Units of the Purpose ETF outstanding prior to the distribution. |
| Initial Issuance of Units: | Pursuant to the terms of the Prospectus, Units will be issued and sold on a continuous basis and there will be no maximum number of Units that may be issued. Units sold in connection with the initial public offering for the Purpose ETF will amount to 150,000 Units at a price of US$100.00 per Unit. |
