Commerce Split Corp. Extends Termination Date

TORONTO, March 12, 2024 (GLOBE NEWSWIRE) -- Commerce 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, 2024 to December 1, 2029.

The term extension allows holders of YCM Capital Shares ("Capital Shares") to receive ongoing leveraged exposure to a portfolio consisting of common stock of Canadian Imperial Bank of Commerce, as well as receiving targeted monthly distributions if and when the net asset value ("NAV") is greater than $15.00. Holders of YCM.PR.A Class I Preferred Shares ("Class I Preferred Shares") and YCM.PR.B Class II Preferred Shares ("Class II Preferred Shares") are expected to continue to benefit from cumulative preferential monthly distributions.

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, 2024. 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, 2024.   

In connection with the term extension, the Company will offer a non-concurrent Special Retraction Right which will allow existing shareholders to tender one or all classes of Shares and receive a retraction price based on the November 29, 2024 net asset value per unit.

The Company invests in common shares of Canadian Imperial Bank of Commerce, a Canadian financial institution.

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.sedarplus.com.