Toronto, Ontario--(Newsfile Corp. - September 25, 2023) - 3iQ Corp., in its capacity as manager (the "Manager") of The Ether Fund (TSX: QETH.UN) (TSX: QETH.U) and 3iQ Ether ETF (TSX: ETHQ) (TSX: ETHQ.U) (the "Funds"), announces that, in anticipation of the previously announced launch of Staking Activities by the Funds, at a special meetings of unitholders held today, the unitholders of each Fund authorized and approved the implementation of a staking services fee payable to the Manager, pursuant to which the Manager is proposing to share in the rewards generated for the Funds by the Staking Activities (the "Staking Service Fee").
The Staking Service Fee is intended to compensate the Manager for the additional work required to administer the staking of a portion of the ether ("ETH") held in the portfolio of each of the Funds (the "Staking Activities") and shall be calculated such that 75% of the rewards (net of validator fees) accrue to the Funds and 25% of the awards accrue to the Manager. In contrast to adopting a fixed fee structure or increasing the current management fees payable by the Funds, the Manager believes the Staking Service Fee being calculated as a percentage of the actual rewards received will result in better alignment with the variable nature of yield generated via the issuance of staking rewards and associated volatility of the price of ETH.
The Staking Service Fee is to be implemented upon the amendment of certain material contracts of each Fund. The Manager will provide a subsequent announcement upon the commencement of the Staking Service Fee.
The details of the Staking Services Fee are further described in the joint management information circular in respect of the Special Meetings available on the SEDAR+ profile of each Fund at www.sedarplus.ca.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and anticipated events or results and may include statements regarding the future financial performance of the funds managed by 3iQ Corp. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
Commissions, trailing commissions, management fees and expenses may all be associated with investment funds. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents.
Ryan Graham, JConnelly
Julie Mercuro, JConnelly
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/181843