Corton Capital Inc. Announces Consolidation of Class ETF Units and Management Fee and Distribution Frequency Changes

Toronto, Ontario--(Newsfile Corp. - February 5, 2025) - Corton Capital Inc. ("Corton"), an investment management firm, has announced today that it intends to consolidate the Class ETF Units of the Corton Enhanced Income Fund (TSX: RAAA) (the "Fund"), reduce the management fees and change the frequency of distributions of the Fund.

Consolidation of the Class ETF Units

After the close of trading on Wednesday, February 5, 2025, on the Toronto Stock Exchange (the "TSX"), the Class ETF Units of the Fund will be consolidated on the ratio of 1:2.5 (the "Consolidation Ratio"). The Class ETF Units of the Fund will begin trading on a post-consolidated basis on the TSX on Monday, February 10, 2025.

When a consolidation occurs, the net asset value per unit is increased by the same ratio as the consolidation so that the unit consolidation has no impact on the value of the investor's total position. An investor's cost per unit is also increased by the same ratio as the consolidation, although their total cost remains unchanged.

No fractional units will be issued. Where the consolidation results in a fractional unit, the number of post-consolidation units will be rounded down to the nearest whole unit, in the case of a fractional interest that is less than 0.5, or rounded up to the nearest whole number, in the case of a fractional interest that is 0.5 or greater.

The Fund reserves the right to cancel or amend these corporate actions if we deem it appropriate to do so, before Monday, February 10, 2025.

Reduction of Management Fees

Effective February 1, 2025, the management fees will be reduced as follows:

This fee reduction underscores Corton's commitment to delivering value to investors by providing cost-effective access to the ETF's innovative income-generating strategy. The Fund aims to generate consistent income while managing risk through predominately owning AAA rated securities.

"We recognize the importance of keeping fees competitive in today's investment environment," said David Jarvis, President and CEO of Corton. "By lowering the management fees, we are further enhancing the yield potential and value of the Corton Enhanced Income Fund for our investors."

This fee reduction reflects Corton' dedication to aligning its interests with those of its investors and its mission to provide innovative investment solutions that meet evolving financial goals.

Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus of the Fund before investing. Mutual funds are not guaranteed or insured by the Canada Deposit Insurance Corporation or any other government deposit insurer. The value of mutual funds, including the Fund, changes frequently and past performance may not be repeated.

Distribution Frequency Change

Effective February 1, 2025, the distribution frequency of the Fund below will change as follows:

About Corton Capital Inc.

Founded in 2018, Corton is about pursuing solutions to the ever-growing challenges people face each day in planning and securing their future.

The investing landscape has seen massive changes in the number of products, market concentration, specialization of market participants and overall complexity. These changes have left many people deeply anxious about their financial security for everyday living and retirement. Corton believes the key to increasing financial security is through financial education, partnering with experienced and specialized managers and managing risk through appropriate asset allocation. Corton's goal is to provide this through traditional and alternative financial products that help individuals achieve their financial goals at a risk level they are comfortable with.

About Astra Asset Management UK Limited

Astra Asset Management UK Limited is a leading European alternative credit manager that was founded in 2012. Prior to founding the firm, the core of the team worked in the corporate and investment banking division of a global financial institution.

As an investment firm Astra focuses on mispriced credit instruments to generate alpha with low volatility for its investors. Astra practices strict discipline in its choice of investments, the thorough analysis of risk, and a commitment to deliver above-market returns through active risk management. Astra's investors benefit from its in-depth expertise both in evaluating credit as well as the structure of different credit instruments, sharpened through years of experience working as a team and "out of the box" thinking. This has enabled the investment team to identify and take advantage of significant dislocations.

Management fees, brokerage fees and expenses all may be associated with investing in ETFs. Please read the prospectus, which contains detailed investment information, before investing. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. ETF units are not guaranteed, their values change frequently, and past performance may not be repeated. ETF units are bought and sold at market price on the TSX or another exchange or marketplace and may only be bought and sold through licensed dealers. Brokerage commissions will reduce returns. There can be no assurance that ETF units will trade at prices that reflect their net asset value per unit. If ETF units are purchased or sold on the TSX or another exchange or marketplace, investors may pay more than the current net asset value when buying units of an ETF and may receive less than the current net asset value when selling them. There can be no assurance that an active public market for ETF units will develop or be sustained. There is no guarantee that ETFs will achieve their stated objectives and there are risks involved in investing in ETFs. Before investing you should read the prospectus or relevant ETF Facts and carefully consider, among other things, the ETF's investment objective, risks, charges, and expenses. A copy of the prospectus and ETF Facts of the ETF Units of the Fund are available at www.cortoncapital.ca or www.sedarplus.com.

Certain statements may constitute a forward-looking statement within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. The forward-looking statements are not historical facts but reflect our 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. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and we do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.

This press release is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. This press release is not for dissemination in the United States or for distribution to United States news wire services.

Contact Information:

Contact Person:

David Jarvis
President and Chief Executive Officer
Corton Capital Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239829

© 2025 Newsfile Corp. All rights reserved.

Read More..

The news, reports, views and opinions of authors (or source) expressed are their own and do not necessarily represent the views of CRWE World.