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Star Hedge Managers successfully closes $75 million IPO

Date: Tuesday, September 30, 2008
Author: Investment Executive

The fund, which aims to provide long-term capital growth, is managed by Rohit Segal, Eric Sprott and Normand Lamarche.

Star Hedge Managers Corp. has successfully closed its initial public offering of 7.5 million units at a price of $10 each for gross proceeds of $75 million.

The fund has been created to provide long-term capital growth by investing in a portfolio consisting of private investment funds or portfolios managed by three of Canada's leading portfolio managers: Rohit Sehgal of Dynamic Funds, Eric Sprott of Sprott Asset Management Inc. and Normand Lamarche of Front Street Investment Management Inc.

Each unit consists of one Class A share of the fund and one warrant to purchase one Class A share. Each warrant entitles the holder to purchase one Class A share at a subscription price of $10.35 on Oct. 30, 2009. Warrants may be tendered for exercise on and after Oct. 15, 2009 and up to Oct. 29, 2009.

The Class A shares and warrants, comprising the unit, will separate immediately following the earlier of 30 days after the closing of the offering and the closing of the final exercise of the over-allotment option, which is exercisable at the option of the agents until 30 days after the closing of the offering to purchase up to 15% of the aggregate number of units issued at the closing of the offering on the same terms.

The units are listed on the Toronto Stock Exchange under the symbol XHM.UN and the Class A shares and the warrants will (on the separation) be listed on the TSX under the symbols XHM.A and XHM.WT, respectively.

BMO Nesbitt Burns Inc. is the promoter and one of the agents in connection with the offering and will act as administrator of the fund.

The units were offered for sale by a syndicate of agents, led by BMO Capital Markets, that includes Dundee Securities Corp., CIBC World Markets Inc., National Bank Financial Inc., RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Richardson Partners Financial Ltd., Manulife Securities Incorporated, Blackmont Capital Inc., GMP Securities LP, Desjardins Securities Inc. and Wellington West Capital Inc.