Marret Asset Management Provides Update on Marret High Yield Strategies Fund and Marret Multi-Strategy Income Fund

TORONTO--(BUSINESS WIRE)--Marret Asset Management Inc. (“Marret”) is providing an update with respect to recent developments potentially impacting Marret High Yield Strategies Fund (CSE: MHY.UN) and Marret Multi-Strategy Income Fund (CSE: MMF.UN) (Marret High Yield Strategies Fund and Marret Multi-Strategy Income Fund collectively, the “Funds”).

The Funds hold private positions which consist of equity and bonds issued by Cline Mining Corporation (“Cline”). Cline’s primary asset is a secured note (“NECC Note”) issued by New Elk Coal Company, LLC (“NECC”), operator of the New Elk Coal mine located near Trinidad, Colorado. NECC is indirectly owned and controlled by Allegiance Coal Limited (“AHQ”), a publicly traded Australian corporation.

NECC and three other entities indirectly owned and controlled by AHQ filed for Chapter 11 protection on February 21, 2023. The other entities are Allegiance Coal USA Ltd., New Elk Coal Holdings LLC ("Holdings"); and Black Warrior Minerals, Inc. Holdings has provided Cline a guarantee of NECC's obligations under the NECC Note. The bankruptcy proceeding against all four entities is being jointly administered.

As manager of the Funds, Marret is continuing to gather information and assess the impact of the bankruptcy filing to the Funds. Marret will provide further updates when appropriate.

About Marret Asset Management Inc.

Marret Asset Management Inc. is a specialist fixed-income manager focused on corporate credit strategies. With mandates in investment grade credit, short-term cash alternatives, high yield and opportunistic distressed, the firm’s focus is on achieving positive absolute returns with emphasis on risk management. CI Financial Corp. (TSX: CIX) has a 65% ownership stake in Marret.

Forward-looking information

This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions “seeks”, “expects”, “believes”, “estimates”, “will”, “target” and similar expressions. The forward-looking statements are not historical facts but reflect the current expectations of Marret and the managers of the underlying portfolios regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. Marret believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Marret can give no assurance that the actual results or developments will be realized. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under “Risks Factors” in the annual information forms of MHY and MMF dated March 25, 2022. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Marret undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.