Middlefield Healthcare & Life Sciences Dividend Fund Completes Largest Closed-End Fund IPO in Canada in 2017 to Date
August 23, 2017
On July 21, 2017, Middlefield Healthcare & Life Sciences Dividend Fund (the “Fund”) completed an initial public offering of trust units at a price of $10.00 per unit for gross proceeds of $102 million. On August 18, 2017, Middlefield Limited announced the closing of the agents’ over-allotment option for additional proceeds of $1.2 million, resulting in aggregate gross proceeds of $103.2 million, making the Fund’s offering the largest closed-end fund IPO in Canada in 2017 to date and the only one in excess of $100 million. The offering was made in each of the provinces of Canada and the Fund’s units trade on the Toronto Stock Exchange.
The objectives of the Fund are to provide investors with stable monthly cash distributions and enhanced long-term total return through capital appreciation of the Fund’s investment portfolio, by utilizing an investment strategy which focuses primarily on investing in dividend-paying securities of issuers operating in, or that derive a significant portion of their earnings or revenue from, products or services related to the healthcare, life sciences and related industries.
The syndicate of agents for the offering was co-led by CIBC Capital Markets and RBC Capital Markets and included BMO Capital Markets, Scotiabank, TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., National Bank Financial Inc., Raymond James Ltd., Manulife Securities Incorporation, Echelon Wealth Partners Inc., Mackie Research Capital Corporation and Middlefield Capital Corporation.
Fasken Martineau advised The Fund and its manager, Middlefield Limited by a team led by Stephen Erlichman and that included John Sabetti, Daniel Fuke and Mariko Rivers (Securities) and Mitchell Thaw (Tax).