Toronto, Ontario--(Newsfile Corp. - October 1, 2021) - 3iQ Corp. ("3iQ") is pleased to announce that it has filed and obtained a receipt for a preliminary prospectus for the Bitcoin Split Trust (the "Fund") from the securities regulatory authorities in each of the provinces and territories of Canada relating to the initial public offering of Preferred Securities and Capital Units of the Fund (the "Offering").
The investment objectives for the Preferred Securities are to provide their holders with fixed quarterly cash interest payments of 6% (US$0.60) per annum on the issue price of US$10.00 and to return the original issue price of the Preferred Security to holders on March 31, 2025 (the "Maturity Date"), subject to extension for successive terms of up to three years as determined by 3iQ.
The investment objectives for the Capital Units are to provide their holders with quarterly cash distributions targeted to be US$0.1125 per Capital Unit (US$0.45 per annum or 3% per annum) on the issue price of US$15.00 per Capital Unit until the Maturity Date, subject to extension for successive terms of up to three years as determined by 3iQ, and to provide their holders with the opportunity to participate in the performance of bitcoin held by the Fund on a leveraged basis.
To achieve its investment objectives, the Fund will invest, directly or indirectly, in long-term holdings of bitcoin. In order to seek to generate income, the Fund may write covered call options and put options in respect of portfolio assets.
In addition to payment in cash, the Fund will accept bitcoin in respect of subscriptions for at least 100,000 Combined Securities (consisting of one Capital Unit and one Preferred Security), or if agreed to by 3iQ for at least 100,000 Capital Units, under the Offering. Details of the subscription process are set forth in the Fund's preliminary prospectus.
3iQ will act as the investment manager and portfolio manager of the Fund.
The syndicate of agents for the offering is being co-led by Canaccord Genuity Corp. and BMO Capital Markets, and includes Echelon Wealth Partners Inc., iA Private Wealth Inc., Leede Jones Gable Inc., PI Financial Corp., Research Capital Corporation and Richardson Wealth Limited.
About 3iQ Corp.
Founded in 2012, 3iQ is Canada's largest digital asset investment fund manager with more thanC$2.5 billion in assets under management. 3iQ was the first Canadian investment fund manager to offer a public bitcoin investment fund, The Bitcoin Fund (TSX: QBTC) (TSX: QBTC.U), and a public ether investment fund, The Ether Fund (TSX: QETH.UN) (TSX: QETH.U). More recently, 3iQ launched the 3iQ CoinShares Bitcoin ETF (TSX: BTCQ) (TSX: BTCQ.U) and the 3iQ CoinShares Ether ETF (TSX: ETHQ) (TSX: ETHQ.U). 3iQ offers investors convenient and familiar investment products to gain exposure to digital assets. For more information about 3iQ and its digital asset investment funds, visit www.3iQ.ca or follow us on Twitter @3iQ_corp.
Fred Pye - Chairman and CEO
P: +1 (416) 639-2130
A preliminary prospectus relating to the Fund has been filed with the Canadian securities commissions or similar authorities. You cannot buy securities of the Fund until the relevant securities commissions or similar authorities issue receipts for the prospectus of the Fund. Important information about the Fund is contained in the preliminary prospectus. Copies of the preliminary prospectus may be obtained from 3iQ, from any of the syndicate members listed above, or atwww.sedar.com.
You will usually pay brokerage fees to your dealer if you purchase or sell securities of the Fund on a stock exchange or other alternative Canadian trading system (an "exchange"). If the securities of the Fund are purchased or sold on an exchange, investors may pay more than the current net asset value when buying securities of the Fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses associated with owning securities of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the Fund in its public filings available atwww.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED THEREIN, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.
This announcement should not be distributed, forwarded, transmitted or otherwise disseminated in or into the United States. This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or subscribe for securities in the United States or any other jurisdiction. The Fund's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or under the applicable securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, resold, transferred or delivered, directly or indirectly within, into or in the United States, absent registration or an applicable exemption from, or except in a transaction not subject to, the registration requirements of the Securities Act and in compliance with the securities laws of any relevant state or other jurisdiction of the United States. Neither this announcement, nor the fact that it has been disseminated, shall form the basis of, or be relied upon in connection with, any future information that we distribute.
Not for distribution to U.S. newswire services or for dissemination in the United States.
This announcement and the information contained herein is restricted and is not for release, publication or distribution, in whole or in part, directly or indirectly in, or into or from the United States or any other jurisdiction in which the same would be unlawful. Further, this announcement is for information purposes only and shall not constitute an offer to sell or issue or the solicitation to buy, subscribe for or otherwise acquire any securities of the Bitcoin Split Trust in any jurisdiction in which any such offer or solicitation would be unlawful.
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