TORONTO, Feb. 21, 2019 (GLOBE NEWSWIRE) -- M Split Corp. (the “Company”) is pleased to announce it will extend the termination date of the Company a further five year period from December 1, 2019 to December 1, 2024.

The term extension allows holders of XMF.A Capital Shares (“Capital Shares”) to potentially receive leveraged exposure to a portfolio consisting of common stock of Manulife Financial if the net asset value (“NAV”) exceeds $10.00, as well as receiving targeted monthly distributions if and when the NAV is greater than $15.00.  Holders of the XMF.PR.B Class I Preferred Shares (“Class I Preferred Shares”) are expected to continue to benefit from cumulative preferential monthly distributions.  Holders of the XMF.PR.C Class II Preferred Shares (“Class II Preferred Shares”) are expected to receive cumulative preferential monthly distributions when the NAV is greater than $10.00. 

The extension of the term of the Company is not expected to be a taxable event and should enable shareholders to defer potential tax liability that would have otherwise been realized on the redemption of the Capital Shares, Class I Preferred Shares and Class II Preferred Shares at the end of the term, until such time as such shares are disposed of by shareholders.

In connection with the extension, the Company will have the right to amend the rate of cumulative preferential monthly dividends to be paid to the Class I Preferred Shares and Class II Preferred Shares for the five year renewal period, commencing December 1, 2019.  Any change to the Preferred Share dividend rates for the extended term will be based on market yields for preferred shares with similar terms at such time and will be announced no later than September 30, 2019.

The Company invests in common shares of Manulife Financial Corporation, the largest life insurer in Canada offering financial products and wealth management services.

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 Company. The forward-looking statements are not historical facts but reflect the Company’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 Company 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 Company 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.  Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Investors should read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the Company’s publically filed documents which are available at www.sedar.com.

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