Exchange Income Corporation Announces Increase to Permitted Foreign Ownership Levels
WINNIPEG, Manitoba – August 14, 2019 – Exchange Income Corporation (TSX: EIF) (the “Corporation” or EIC”), a diversified, acquisition-oriented company focused on opportunities in the aviation, aerospace and manufacturing sectors, announced the completion of previously announced amendments to its articles of amalgamation to increase permitted foreign ownership levels to 49% from 25%.
The Canada Transportation Act has been amended to increase permissible foreign ownership in Canadian airlines to 49% from 25% provided that no single non-Canadian may own or control more than 25% of the voting interests in a Canadian airline and no more than 25% of the voting interest in a Canadian airline may be owned by foreign airlines. The Government of Canada’s stated purpose in implementing the Canadian Transportation Act amendments is to attract more foreign investment and encourage growth in the aviation sector.
A resolution to amend the Corporation’s articles of amalgamation was passed at its most recent Annual General and Special Meeting to align with the new foreign ownership levels now permitted under the Canada Transportation Act. This amendment has now been filed and is effective.