Canadian Warrants

Old security       Old        New security         New        New
name               symbol     name                 symbol     Cusip

Class A shares     XMF        Capital shares       XMF.A      55376A 70 1

Priority equity
shares             XMF.PR.A   $5 Class I
                              preferred shares     XMF.PR.B   55376A 50 3

                              $5 Class II
                              preferred shares     XMF.PR.C   55376A 60 2

                              2011 warrants        XMF.WT     55376A 11 5

                              2012 warrants        XMF.WT.A   55376A 12 3

The foregoing results from the recently effective capital reorganization of the company. For further details of the reorganization see TSX bulletin 2010-0209 dated Feb. 22, 2010.

As a result of the reorganization, holders of priority equity shares (symbol: XMF.PR.A) who did not exercise the special retraction right (as such term is defined in TSX bulletin 2010-0209) by the retraction deadline, will receive the following securities in exchange for each priority equity share held:

One $5 Class I preferred share (symbol: XMF.PR.B);
One $5 Class II preferred share (symbol: XMF.PR.C);
One 2011 warrant (symbol: XMF.WT);
One 2012 warrant (symbol: XMF.WT.A).

Since more priority equity shares were tendered for retraction under the special retraction right than Class A shares, the outstanding Class A shares will effectively be consolidated through an adjustment to the number of capital shares to be issued to holders of Class A shares in the reorganization. The consolidation will be implemented so that following the reorganization, there will be an equal number of capital shares, Class I preferred shares and Class II preferred shares outstanding.

As a result of the reorganization and the consolidation, holders of Class A shares (symbol: XMF) who did not exercise the special retraction right by the retraction deadline will receive 0.944808 of a capital share (symbol: XMF.A) in exchange for each Class A share held, after giving effect to the consolidation.

Fractional capital shares will not be issued pursuant to the reorganization. All resulting fractional interests will be rounded down to the next lowest whole number of capital shares.

A summary of some of the provisions attaching to the Class I preferred shares, Class II preferred shares, 2011 warrants, 2012 warrants and capital shares follows at the end of this bulletin. For additional information regarding the provisions attaching to the Class I preferred shares, Class II preferred shares, 2011 warrants, 2012 warrants and capital shares reference should be made to the company's management information circular dated Dec. 23, 2009.

Pursuant to the special retraction right, each holder of a priority equity share who exercised the special retraction right by the retraction deadline received $7.63 per share, while holders of Class A shares who exercised the special retraction right by the retraction deadline received 33.4 cents per share on March 16, 2010.

The Class A shares and priority equity shares of the company traded in the book-entry-only system of CDS Clearing and Depository Services Inc. and no certificates for the Class I preferred shares, Class II preferred shares, 2011 warrants, 2012 warrants and capital shares will be issued to beneficial holders. Beneficial holders of Class A shares and priority equity shares do not need to take any action in order to receive the new securities or cash to which they are entitled.

The following is a summary of some of the principal provisions of the Class I preferred shares, Class II preferred shares, 2011 warrants, 2012 warrants and capital shares.

Class I preferred shares

Each Class I preferred share (symbol: XMF.PR.B) pays fixed cumulative preferential monthly dividends to yield 7.50 per cent per annum on the $5 notional issue price and having a repayment objective on Dec. 1, 2014, or such other date as the company may be terminated of $5.

Class II preferred shares

Each Class II preferred share (symbol: XMF.PR.C) pays distributions to yield 7.50 per cent per annum on the $5 notional issue price if and when the net asset value per unit exceeds $12.50 and having a repayment objective on the termination date of $5. Each unit consists of one Class I preferred share, one Class II preferred share and one capital share.

2011 warrant

Each 2011 warrant (symbol: XMF.WT) can be exercised to purchase one unit for an exercise price of $10 per unit at specified times until Feb. 28, 2011.

2012 warrant

Each 2012 warrant (symbol: XMF.WT.A) can be exercised to purchase one unit for an exercise price of $12.50 per unit at specified times until Feb. 28, 2012.

Capital shares

Capital shares (symbol: XMF.A) will continue to participate in any net asset value growth over $10 per unit and dividends would be reinstated only if and when the net asset value per unit exceeds $15. The dividend rate on the capital shares will be set by the board of directors of the company at its discretion, based on market conditions. No dividend payments will be made on the capital shares unless all dividends on the Class I preferred shares and, if applicable, Class II preferred shares have been declared and paid.

M Split reorganization to take effect March 23

2010-03-19 11:16 MT - News Release
The reorganization previously approved by M Split Corp. shareholders will be effective on March 23, 2010.

At the opening of trading on March 23, 2010, holders of priority equity shares (symbol: XMF.PR.A) will have received the following securities in exchange for each priority equity share held:

One $5 Class I preferred share (symbol: XMF.PR.B);
One $5 Class II preferred share (symbol: XMF.PR.C);
One 2011 warrant (symbol: XMF.WT);
One 2012 warrant (symbol: XMF.WT.A).
As previously announced in Stockwatch on March 4, 2010, since more priority equity shares were tendered for retraction under the special retraction right than Class A shares, the outstanding Class A shares will effectively be consolidated through an adjustment to the number of capital shares to be issued to holders of Class A shares in the reorganization. The consolidation will be implemented so that following the reorganization, there will be an equal number of capital shares, Class I preferred shares and Class II preferred shares outstanding.

As a result of the reorganization and the consolidation, holders of Class A shares (symbol: XMF) will receive 0.944808 of a capital share (symbol: XMF.A) in exchange for each Class A share held.

The following is a summary of some of the principal provisions of the Class I preferred shares, Class II preferred shares, 2011 warrants, 2012 warrants and capital shares.

Class I preferred shares

Each Class I preferred share (symbol: XMF.PR.B) pays fixed cumulative preferential monthly dividends to yield 7.50 per cent per annum on the $5 notional issue price and having a repayment objective on Dec. 1, 2014, or such other date as the company may be terminated of $5.

Class II preferred shares

Each Class II preferred share (symbol: XMF.PR.C) pays distributions to yield 7.50 per cent per annum on the $5 notional issue price if and when the net asset value per unit exceeds $12.50 and having a repayment objective on the termination date of $5. Each unit consists of one Class I preferred share, one Class II preferred share and one capital share.

2011 warrant

Each 2011 warrant (symbol: XMF.WT) can be exercised to purchase one unit for an exercise price of $10 per unit at specified times until Feb. 28, 2011.

2012 warrant

Each 2012 warrant (symbol: XMF.WT.A) can be exercised to purchase one unit for an exercise price of $12.50 per unit at specified times until Feb. 28, 2012.

Capital shares

Capital shares (symbol: XMF.A) will continue to participate in any net asset value growth over $10 per unit and dividends would be reinstated only if and when the net asset value per unit exceeds $15. The dividend rate on the capital shares will be set by the board of directors of the company at its discretion, based on market conditions. No dividend payments will be made on the capital shares unless all dividends on the Class I preferred shares and, if applicable, Class II preferred shares have been declared and paid.

For additional information regarding the provisions attached to the Class I preferred shares, Class II preferred shares, 2011 warrants, 2012 warrants and capital shares, reference should be made to the company's management information circular dated Dec. 23, 2009.

The current portfolio of M Split is 99 per cent in cash with a 1-per-cent holding in Manulife common shares. The company will initiate its full investment plan and increase its investment in Manulife common shares and its supplemental covered call writing program beginning on March 23, 2010.

The company will provide the actual opening net asset value per unit on the effective date of the reorganization.