Core Viewpoint - Middlefield Canadian Income PCC and its fund are proposing a voluntary winding up and offering shareholders the option to exchange their shares for those in a newly established UCITS ETF, allowing continued investment exposure [2][3]. Group 1: Proposed Transaction - The Company and Fund announced a voluntary winding up, allowing shareholders to receive shares in a new actively managed UCITS ETF in exchange for their holdings [2]. - Shareholders can choose to either fully or partially exchange their shares for ETF shares or opt for an uncapped cash exit close to the net asset value per share [3]. Group 2: ETF Management and Structure - The ETF will be managed by Middlefield Limited, ensuring continued alignment with the Company's investment objectives [3]. - HANetf has been appointed to assist in structuring and establishing the ETF, providing ongoing operational and marketing support [4]. Group 3: Regulatory Approvals - The Central Bank of Ireland has approved the establishment of the ETF, and an application for formal recognition by the Financial Conduct Authority is underway [5]. - Admission to trading on Euronext Dublin and the London Stock Exchange is expected in Q4 2025 [5]. Group 4: Shareholder Communication - A circular detailing the transaction will be published in September 2025, convening meetings for shareholder resolutions [6]. Group 5: Financial Position - The Fund has repaid existing loans and remains ungeared, intending to stay fully invested [7]. Group 6: Tax Implications - Clearance has been received from HM Revenue & Customs, allowing shareholders to roll over their investment into the ETF without triggering immediate UK capital gains tax liabilities [8].

Core Viewpoint - Middlefield Canadian Income PCC and its Fund plan to propose a transaction allowing shareholders to exchange their shares for those in a newly established UCITS ETF, aimed at enhancing liquidity and addressing the discount to NAV [5][9][17] Group 1: Transaction Details - The proposed transaction involves the voluntary winding up of the Company and the Fund, with shareholders given the option to receive shares in the new ETF or cash close to the Company's NAV per share [5][6] - The ETF will be actively managed by Middlefield Limited and will maintain the existing investment objective focused on high-quality Canadian and US large-cap companies [5][10][14] - Shareholders can choose to retain their investment through the ETF, opt for a cash exit, or a combination of both [6][18] Group 2: Shareholder Engagement - The Company received a requisition notice from Saba Capital Management proposing a scheme for shareholders to transition to a UK-listed investment vehicle, which led to discussions and the temporary withdrawal of the requisition [7][8] - The Board consulted with major shareholders, including Saba, to formulate proposals that would best serve shareholder interests [8][9] Group 3: ETF Structure and Benefits - The ETF is expected to have a lower total expense ratio (TER) than the current Company TER, targeted to be below 1%, and will trade close to its NAV due to its structure [11][14] - The ETF aims to provide quarterly distributions similar to current dividends and may utilize financial derivative instruments to support its dividend policy [14][15] - Middlefield has a successful track record of rolling closed-end funds into ETFs, with several of its funds ranked among the top-performing Canadian ETFs [12] Group 4: Timeline and Future Steps - The establishment of the ETF and the circular relating to the transaction are expected to be sent to shareholders by August 2025, pending regulatory and tax approvals [16]