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Marret Resource Corp. Announces Proposed Amendment To Articles To Create Class A Shares And Provide Annual Liquidity Right To Shareholders

Stocks in this article: MAR

TORONTO, Sept. 26, 2013 /CNW/ - Marret Resource Corp. (TSX: MAR) (the " Company") announced today that it is proposing an amendment to its constating documents (the " Proposed Amendment") to create class A shares (" Class A Shares") and provide an annual liquidity right (" ALR") to holders of Class A Shares and common shares of the Company (" Common Shares") beginning in 2015 at a price equal to a percentage of the net asset value per share (" NAV") as determined by the directors of the Company (the " Board").

The Class A Shares will be identical to the common shares of the Company (the " Common Shares") in all respects, with the same rights, privileges and restrictions, but will not be listed on any exchange. The holders of Common Shares will have the one time right to convert their Common Shares into Class A Shares and the holders of Class A Shares will have the ongoing right to convert their Class A Shares into Common Shares on a quarterly basis.  The conversion of Common Shares into Class A Shares will be limited if it affects the ability of the Company to maintain listing requirements of Toronto Stock Exchange (" TSX").

The ALR will apply in circumstances where as of December 31 of any year after 2013 the average closing price of the Common Shares on the TSX is less than 97% of the average NAV when calculated over the last fiscal quarter of that year and Marret Asset Management Inc., the manager of the Company, makes a recommendation to the Board that the ALR be offered to holders of Common Shares and Class A Shares. If the Board, following such recommendation, initiates an ALR, the Company will announce the particulars of the ALR, which must be completed prior to March 31 of the following year. No more than 25% of the shares of a particular class in aggregate may be redeemed prior to March 31, 2015 and no more than 10% of the shares of a particular class may be redeemed annually thereafter.  Should more shareholders elect to participate in the ALR than the Company is permitted to redeem, such shares will be redeemed on a pro-rata basis.  The earliest possible ALR will be in March 2015.

The Company expects to hold a special meeting of holders of Common Shares (the " Special Meeting") during the fourth quarter of 2013 to seek the requisite shareholder approval of the Proposed Amendment.  A management information circular containing important detailed information about the Proposed Amendment, including the creation of the Class A Shares and the ALR, and the Special Meeting, will be posted on under the Company's profile.  The Proposed Amendment is also subject to approval of the TSX.

About Marret Resource Corp.

The Company is focused on natural resource lending. The Company's business is primarily directed to investing in public and private debt securities of and making term loans (including bridge and mezzanine debt) to issuers in a broad range of natural resource sectors, including energy, base and precious metals and other commodities, and issuers involved in exploration and development, and may also include financing other resource related businesses and investing in public and private equity and quasi-equity securities. The Company seeks to generate income mainly from its lending activities, while taking advantage of additional upside through equity participation in the companies which it finances. Marret Asset Management Inc. is responsible for implementing Company's investment strategy and managing its investment portfolio.

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