Proposed merger will open up broader investable universe as firm bares plans for alternative mutual-fund lineup
Next Edge Capital Corp. is embarking on the next phase of enhancements to its investment fund platform with a proposal to create a new alternative mutual fund.
Pending unitholder and regulatory approvals, the firm is seeking to merge its Next Edge Bio-Tech Plus Fund into a new liquid-alt fund. If approved, the merger into the new Next Edge Biotech and Life Sciences Opportunities Fund is anticipated to take effect on or about December 18, 2020 – and would mark Next Edge’s first step into Canada’s liquid-alternative space.
“We are excited to launch our new product line of alternative mutual funds to the Canadian marketplace,” said Robert Anton, managing director at Next Edge. “The Next Edge Biotech and Life Sciences Opportunities Fund will be the first offering in this new product line and we look to bring other new and innovative investment products to Canadian investors in the near future.
A preliminary simplified prospectus for the new fund, along with a preliminary annual information form and preliminary fund facts, has been filed with Canadian securities regulatory authorities. Final versions of the documents will be filed with the regulatory authorities prior to the effective date of the merger.
The merger is proposed to be implemented on a taxable basis, which would therefore have potential tax consequences for unitholders of the terminating Next Edge Bio-Tech Plus Fund. If it is approved, unitholders of the terminating fund will receive units of the continuing fund based on the applicable NAV per unit.
Following the merger, automatic distribution reinvestment plans and other optional services that had been established with respect to the terminating fund will be carried on with respect to the new fund.
“We look forward to having a broader investable universe than we are currently afforded and having access to additional investment opportunities, increased liquidity and greater flexibility when making investment decisions that being an ‘alternative mutual fund’ under NI 81-102 affords us and that are not permitted for conventional mutual funds,” said Eden Rahim, portfolio manager of the Biotech and Life Sciences Opportunities Fund.
