Citadel Income Fund Approves Special Redemption of Units
Citadel Income Fund (TSX - CTF.UN) has announced that the unitholders of the Fund have approved a special redemption of units. The extraordinary resolution authorizes the Fund to redeem a minimum of 7,186,900 units at a price per unit equal to the net asset value per unit minus redemption costs and applicable taxes. The redemption date for this special redemption has been set for December 7, 2023. If redemption requests exceed the available units, redemptions will be done on a pro rata basis.
Redemption Process
Unitholders who wish to redeem their units must deliver a redemption notice to their broker, ensuring that it is received by the Fund's transfer agent no later than 5:00 p.m. (Toronto time) on November 16, 2023. The special redemption price will be announced on or about December 14, 2023, and the Fund expects to pay the redemption proceeds to redeeming unitholders on or before January 3, 2024.
No Annual Redemption
It is important to note that there will be no annual redemption due to the approval of the extraordinary resolution for the special redemption. Unitholders with questions regarding the redemption process should contact their brokers for assistance.
For further information, unitholders can reach out to their financial advisors or contact Artemis Investment Management's investor relations line at (416) 934-7455 or via email at info@artemisfunds.ca. Additional details can also be found on the Fund's website at www.artemisfunds.ca.
Please note that this information is subject to forward-looking statements and various risks and uncertainties. Investors are advised to exercise caution and refer to the Fund's Annual Report for the year ended December 31, 2022, for a comprehensive understanding of the associated risks.
Implications for New Businesses
The recent announcement by Citadel Income Fund about the special redemption of units offers a crucial lesson for new businesses, particularly those in the financial sector. The move, which allows unitholders to redeem their units at a price equal to the net asset value per unit minus redemption costs and taxes, underscores the importance of flexibility and responsiveness in business operations.
Strategic Financial Management
For new businesses, this development highlights the significance of strategic financial management. By offering a special redemption, Citadel is essentially providing its unitholders with an opportunity to cash in on their investments, a move that could potentially boost investor confidence and loyalty.
Risk Management
However, this strategy also comes with risks. If too many unitholders decide to redeem their units, the fund could face liquidity issues. This underscores the importance of risk management and contingency planning in business operations.
In conclusion, while Citadel's special redemption of units presents a strategic move to enhance investor relations, it also serves as a reminder to new businesses about the importance of strategic financial management and risk mitigation.
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