Harvest Canadian Consolidated Energy Fund Announces Exchange Ratios

OAKVILLE, ON, Nov. 22, 2019 /CNW/ - Harvest Portfolios Group Inc. (the "Manager"), on behalf of Harvest Canadian Consolidated Energy Fund (the "Fund"),  is pleased to announce the exchange ratios for the exchange offer by the Fund (the "Exchange Option") being made under the preliminary prospectus of the Fund dated October 29, 2019. 

The Fund's investment objectives are to provide Unitholders with: (i) quarterly cash distributions; and (ii) the opportunity for capital appreciation through investments primarily in listed Equity Securities of companies operating in the Canadian Energy Universe.

In selecting the Canadian Energy Issuers from the Canadian Energy Universe, the Manager may give consideration to: (i) each issuer's fundamental balance sheet position; (ii) each issuer's opportunity for financial growth; (iii) production costs for commodity producing issuers; (iv) the experience of the issuer's management team; (v) oil and natural gas production allocation; and (vi) overall portfolio energy sub-sector diversity. Approximately 80% of the Fund's net assets will be invested in up to 19 Canadian Energy Issuers on an equal-weight basis (the "Canadian Portfolio") and approximately, but not more than, 20% of the Fund's net assets will be invested in the U.S. dollar denominated units of the Harvest Energy Leaders Plus Income ETF in order to gain exposure primarily to global Energy Issuers. The Canadian Portfolio will be reconstituted and rebalanced within 30 days following the end of each calendar quarter following March 31, 2020.

The Manager will be responsible for the execution of the Fund's overall investment strategy, including managing the composition of the Portfolio.

The initial quarterly cash distribution target for the Fund is $0.12 per Unit per quarter ($0.48 per annum), representing an annual cash distribution of 4% based on the per Unit issue price.

The number of Units issuable for each security of an Exchange Eligible Issuer (the "Exchange Ratio") was determined by dividing the volume weighted average trading price of such securities on the TSX or other applicable exchange during the period of three consecutive trading days ending on and including November 22, 2019 (the "Pricing Period"), as adjusted to reflect dividends or distributions declared by the applicable Exchange Eligible Issuer that will not be received by the Fund, by $12.00.  Holders of securities of Exchange Eligible Issuers who deposited such securities pursuant to the Exchange Option will continue to be holders of record up to but not including the date of the closing of the offering of Units and will be entitled to receive dividends or distributions in respect of such securities of Exchange Eligible Issuers that are declared up to but not including such date. Each Exchange Ratio was rounded down to five decimal places. Fractional Units will not be issued by the Fund. Allocation of cash in respect of fractional Units to purchasers who have authorized the deposit of Exchange Eligible Securities through CDS will be at the discretion of the CDS Participant.

The table below sets out the name of the Exchange Eligible Security, ticker symbol, CUSIP number, ISIN, the volume weighted average trading price and the Exchange Ratio during the Pricing Period.

All capitalized terms used but defined herein are as defined in the preliminary prospectus.

The syndicate of agents for the offering is being co-led by BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets, Scotiabank, National Bank Financial Inc., and TD Securities Inc., and also includes Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Mackie Research Capital Corporation, Manulife Securities Incorporated and PI Financial Corp.

For information, please visit www.harvestportfolios.com 

A preliminary prospectus dated October 29, 2019 (the "Prospectus") containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The Prospectus is still subject to completion or amendment. Copies of the Prospectus may be obtained from any of the agents. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund or the Manager. The forward-looking statements are not historical facts but reflect the Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

SOURCE Harvest Portfolios Group Inc.

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