TORONTO, November 13, 2020 - Ninepoint Partners LP (“Ninepoint”) announced that each of the Ninepoint 2019 Flow-Through Limited Partnership (the “2019 Partnership”), Ninepoint 2019 Short Duration Flow-Through Limited Partnership (the “2019-II Partnership”) and Ninepoint 2020 Flow-Through Limited Partnership (the “2020 Partnership”, and together with the 2019 Partnership and the 2019-II Partnership, the “Partnerships” and each a “Partnership”), each managed by Ninepoint, will be proceeding with a tax-deferred transfer of the assets of the Partnership into Ninepoint Resource Class, a class of shares of Ninepoint Corporate Class Inc., an open-ended mutual fund corporation (the “Mutual Fund Rollover Transactions”). In exchange for the assets of the 2019 Partnership and the 2019-II Partnership, Ninepoint Resource Class will issue Series F shares to the Partnership, which will be distributed to limited partners of each Partnership in exchange for their limited partnership units of the Partnership.
In exchange for the assets of the 2020 Partnership, Ninepoint Resource Class will issue Series A and Series F shares to the Partnership, which will be distributed to limited partners of the Partnership in exchange for their Class A and Class F limited partnership units of each of the National and the Québec portfolio of the Partnership. Ninepoint has elected to conduct a Mutual Fund Rollover Transaction for the 2020 Partnership in advance of the liquidity event originally anticipated in early 2022 because it is expected that the 2020 Partnership will soon realize all tax benefits through its investment in resource issuers that have renounced their Canadian Exploration Expenses to the Partnership and accordingly limited partners can be provided with an earlier liquidity event during expected favourable market conditions.
Limited partners will receive shares of Ninepoint Resource Class with a value equal to the value of the units of the Partnership that they hold in exchange for such units. The Mutual Fund Rollover Transactions will take place on or about February 5, 2021 after the close of business. The Partnerships will be dissolved on or about March 31, 2021.
The investment objective of Ninepoint Resource Class is to seek to achieve long-term capital growth by investing primarily in equity and equity-related securities of companies in Canada and around the world that are involved directly or indirectly in the natural resources sector. Ninepoint is the manager of the Partnership and Ninepoint Resource Class. Sprott Asset Management LP is the sub-advisor to Ninepoint Resource Class.
About Ninepoint Partners LP
Based in Toronto, Ninepoint is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies including North American Equity, Global Equity, Real Assets and Alternative Income.
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Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions “expects”, “will” and similar expressions to the extent that they relate to a Partnership. The forward-looking statements are not historical facts but reflect the Partnership’s and Ninepoint’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 Partnership and Ninepoint believe 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. Neither the Partnership, nor Ninepoint undertake any 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.