Redwood Asset Management Announces First Ever ETF Exchange Offer for the Redwood Canadian Preferred Share Fund

TORONTO, Aug. 24, 2017 (GLOBE NEWSWIRE) -- Redwood Asset Management Inc. (“Redwood”) is pleased to offer an exchange offering for the ETF units of the Redwood Canadian Preferred Share Fund (the “ETF”, or “the Fund”). Investors have until September 15, 2017 to tender their preferred shares and other accepted securities in exchange for units of the Fund. The offering, which closes on September 22, 2017, is the first of its kind in Canada, and is another example in Redwood’s focus on delivering innovative solutions to Canadian investors. The Fund trades under the ticker symbol RPS on the NEO Exchange.

“We are excited to offer this opportunity to Canadian investors. With the recent appreciation in preferred shares, we believe that exchanging select preferred shares and ETFs for units in our actively managed ETF provides investors with the ability to continue to participate in the space while protecting recent gains,” said Mr. Shippen. “This ETF exchange offering will allow investors who have participated in the preferred share market to exchange their individual securities for a diversified, actively managed basket of preferred shares that we believe hold superior risk/reward opportunities.”

The number of ETF Units that may be purchased in-kind by tendering eligible securities of Exchange Eligible Issuers will be determined by dividing the weighted average trading price of the security during the period of five consecutive trading days ending on September 15, 2017 (the “Pricing Period”), as adjusted to reflect any distributions that will not be received by the Fund declared by any Exchange Eligible Issuer, by the net asset value of the Fund on the last day of the Pricing Period. The Exchange Ratio for any securities that do not trade in Canadian dollars will be determined by converting the weighted average trading price on the applicable exchange of the securities into Canadian dollars based on the 4:00 p.m. rate of exchange on the last day of the Pricing Period. Holders of securities of Exchange Eligible Issuers (“Exchange Eligible Holders”) who deposited securities pursuant to the Exchange Option will continue to be holders of record up to but not including the date of the closing of this Offering, and will be entitled to receive distributions in respect of Exchange Eligible Issuers securities up to but not including this date. Each Exchange Ratio will be rounded down to five decimal places. The Fund will not issue fractional Units pursuant to the Exchange Option. Entitlement to fractional Units will be determined on the basis of the aggregate number of securities of each Exchange Eligible Issuer acquired pursuant to the Exchange Option and the Fund will issue to CDS cash in lieu thereof. Allocations by CDS of cash in lieu of fractional Units to participants in CDS will be at the discretion of CDS and the allocation of cash in lieu of fractional Units to purchasers who have authorized the deposit of securities of Exchange Eligible Issuers through CDS will be at the discretion of the CDS participants.

The investment objective of the Fund is principally to provide a consistent stream of income with potential for capital appreciation by investing in Canadian income producing securities and Canadian equities.

The table below sets out the Exchange Eligible Issuers and the securities which may be accepted by the Fund pursuant to the Exchange Option, including the name of the Exchange Eligible Issuer, the ticker symbol for each eligible security, its CUSIP number, and its ISIN.

About Redwood Asset Management
Redwood Asset Management is a Toronto-based investment fund manager, focused on delivering unique investment solutions managed by boutique global investment managers to Canadian investors. Redwood Asset Management is a wholly owned subsidiary of Purpose Investments Inc., which has over $3.4 billion in assets under management. More information about Redwood's product offerings is available at www.redwoodasset.com.

For further information, please visit our website at www.redwoodasset.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing.