Unitholders of ROI Canadian High Income Mortgage Fund, ROI Canadian Mortgage Income Fund and ROI Canadian Real Estate Fund Approve Reorganization

Jun 16, 2014, 09:59 ET from ROI Capital

TORONTO, June 16, 2014 /CNW/ - Return On Innovation Advisors Ltd. ("ROI Capital") is pleased to announce the results of the meetings of unitholders of each of ROI Canadian High Income Mortgage Fund ("RIH.UN"), ROI Canadian Mortgage Income Fund ("RIL.UN") and ROI Canadian Real Estate Fund ("RIR.UN" and together with RIH.UN and RIL.UN, the "Listed Funds").

At the meetings held today, unitholders of each of the Listed Funds considered and approved resolutions authorizing the proposed reorganization of the Listed Funds (the "Reorganization"). The Reorganization includes the change in manager from ROI Capital to Dream Asset Management Corporation ("DREAM") along with the indirect transfer of approximately $730 million in assets collectively from the Listed Funds, the underlying reference funds and ROI Institutional Private Placement Fund ("ROI IPP", and together with the Listed Funds, the "ROI Funds") to Dream Hard Asset Alternatives Trust ("Dream Alternatives Trust").  The voting results are as follows:


Percentage of Votes Cast

In Favour










"We are very pleased with the overwhelmingly positive results of today's unitholder meetings. We believe the reorganization with DREAM is genuinely in the best interest of our unitholders." says ROI Capital President Wilfred Vos. "The new Dream Alternatives Trust provides our investors with tax efficient income from a growth oriented portfolio of hard assets including private commercial mortgages and real-estate, managed by an industry leader, DREAM."

In connection with the Reorganization, the distribution reinvestment plans (each a "DRIP") of each of the Listed Funds has been suspended effective immediately and it is anticipated that each DRIP will be terminated on closing of the Reorganization.  Further, the monthly redemptions of each of the ROI Funds has been suspended effective immediately to facilitate the orderly closing of the Reorganization. 

Unitholders of the ROI Funds as at the closing of the Reorganization will, in connection with the closing of the Reorganization, receive a one-time special distribution of cash representing approximately 10% of the net asset value of each applicable ROI Fund and a distribution of units of Dream Alternatives Trust, on a pro rata basis, based on the relative net asset values of the ROI Funds. The Reorganization is expected to close on or about July 8, 2014.  Details regarding the number of Dream Alternatives Trust units each unitholder of the ROI Funds will receive as well as information regarding distributions and timing of closing of the Reorganization will be made public in due course.

About ROI Capital

Established in 2002, ROI Capital is a privately held Canadian investment management firm that specializes in commercial mortgages, loans and private real estate investments. With a deep understanding of the fundamentals of the commercial real estate market, ROI Capital strives for capital preservation while seeking to deliver sustainable income and long-term returns for investors. This is achieved by primarily focusing on income-producing properties in large urban markets. ROI Capital has created a bridge between investors seeking the income potential from alternative investments and borrowers in Canada's flourishing commercial real estate sector seeking non-bank financing. In just over a decade, ROI Capital has financed over $1.7 billion (as of March 31, 2014) across approximately 200 private commercial real estate investments and has continuously delivered value and income to investors. For more information: www.roicapital.ca

Certain statements included in this news release constitute forward-looking statements, including statements relating to the Reorganization and its completion. The forward-looking statements are not historical facts but reflect 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 and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. ROI Capital undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no guarantee that an investment in any ROI Fund will earn any positive return in the short or long term nor is there any guarantee that the ROI Fund's investment objectives will be achieved or that the net asset value per unit will appreciate or be preserved.