The merger was implemented on a tax-deferred rollover basis for unitholders at an exchange ratio calculated as the net asset value ("NAV") per unit of each merging fund divided by the NAV per unit of VIP, the continuing fund, each determined as at the close of business on July 3, 2008. The table below provides the respective exchange ratios and NAV per unit for each of the Funds at such time.
| Fund | Exchange Ratio | NAV Per Unit |
|---|---|---|
| VIP.UN | 1.000000 | $13.5846 |
| BSR.UN | 0.965166 | $13.1114 |
| EWI.UN | 0.858310 | $11.6598 |
| BWI.UN | 0.691945 | $ 9.3998 |
| BTH.UN | 0.736385 | $10.0035 |
| BTF.UN | 0.666423 | $ 9.0531 |
| BDS.UN | 1.013000 | $13.7612 |
Unitholders of the funds are not required to take any action in order to be recognized as a unitholder of VIP. Former unitholders of the merging funds who wish to participate in the distribution reinvestment plan ("DRIP") can enrol in the DRIP program by contacting their Investment Advisor and requesting that they be enrolled in the Brompton VIP Income Fund Distribution Reinvestment Plan.
Preferred securities of BDS will be automatically exchanged for 6.0% preferred securities of VIP (ticker symbol VIP.PR.A) and preferred securityholders will be considered to have disposed of their BDS preferred securities for proceeds equal to $10.00 per preferred security upon the exchange.
Prior to the opening of trading on July 7, 2008, VIP will have approximately 58.4 million units outstanding and a market capitalization of approximately $780 million. Units of VIP issued pursuant to the merger will trade under the symbol VIP.UN beginning on July 7, 2008. As part of the reorganization, the monthly distribution rate for unitholders of record of VIP on July 31, 2008 will be increased to $0.10 per unit, which represents an 11% increase over the distribution rate paid prior to the fund reorganization.
For additional information regarding the funds, please visit our website at www.bromptongroup.com, or call our investor relations line at 416-642-9051 or toll free at 1-866-642-6001.