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Canadian General Investments, Limited Announces Approval of Subdivision and Re-pricing of its Warrants.

TORONTO--(BUSINESS WIRE)--July 3, 1997--Canadian General Investments Limited (TSE CGI. CGI.WT., LSE CGIq.L. CGIwsq.L.) The Holders of Warrants of Canadian General Investments, Limited (CGI) today approved by Extraordinary Resolution the previously announced amendment and restatement of the CGI Warrant Indenture dated February 10, 1995.

Under the terms of the amendment, each existing warrant is subdivided on the basis of 3.3995 new warrants (New Warrants) for each existing warrant so that one New Warrant will be exercisable for one common share of the Company at an initial Exercise Price of $11.725.

Previous to these amendments, existing warrants had an exercise price of $39.86 per warrant to purchase 3.3995 common shares.

The subdivision is in effect as of 5 p.m. Toronto time, July 3, 1997. It is expected that the warrants will commence trading on a split basis on the Toronto Stock Exchange (the "TSE") on or about July 10, 1997. Until such date, the warrants will continue to trade on the TSE on the same basis as at present.

The simplification of terms of the warrants should benefit all warrantholders, as subject to TSE approval, the exercise ratio of one New Warrant to one common share will be maintained should there be future adjustments to the common shares of the Company as described in the amended Warrant Indenture. In addition, there will be improved liquidity from the public float increasing to approximately 1,319,000 from the current 388,000 warrants.

New Warrant Certificates (CUSIP number 135825 123) will be issued in exchange for existing warrant certificates (CUSIP number 135825 115). Holders of existing warrants will shortly receive a Letter of Transmittal from Montreal Trust Company of Canada (the "Warrant Agent") and they are requested to complete and return the document together with warrants as directed. Warrantholders should only return their existing warrants to the Warrant Agent after receiving the official Letter of Transmittal.

No fractions of the New Warrants will be issued to Holders. Fractions will be aggregated and the Warrant Agent will attempt to sell these in the market for the benefit of entitled Holders.

Canadian General Investments, Limited, established in 1930, is one of Canada's largest closed-end investment companies with total assets currently in excess of $285 million.

For the current year, the most recent computed values to June 26, 1997 show Basic Net Asset Value per share growth at 10.4 percent and on a fully diluted basis, an increase of 9.0 percent. By comparison, the TSE 300 Composite Index and the TSE 300 Total Return Index for the same period show increases of 8.9 percent and 9.9 percent respectively.

The Corporation is listed on the Toronto Stock Exchange and on the London Stock Exchange.

In the United Kingdom, copies of any documentation regarding the above will be made available from the U.K. Transfer Agent, R-M Trust Company, Balfour House, 390 High Road, Ilford, Essex, 1G1 1NQ. Phone 0 181 478 1888.

CONTACT: Canadian General Investments, Limited

Michael A. Smedley, 416/ 366-2931

416/ 366-2729 (FAX)

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Publication:Business Wire
Date:Jul 3, 1997
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