Stock Name: PVT.UN
Amount: CAD 1.41
Announcement Date: 28/12/2011
Record Date: 19/12/2011
Dividend Detail:
Symbol: PVT.UN (TSX-V)
CALGARY, Dec. 28, 2011 /CNW/ - Due to the recent increase in market
price and level of trading activity of its units, Proventure Income
Fund ("Proventure") is confirming previously announced transactions
including the December 2011 special cash distribution, and is providing
guidance on the anticipated special cash distribution to be declared
and paid to its unitholders in January 2012 following the sale of
certain assets by Proventure to Cervus Equipment Corp. ("Cervus").
As announced by Proventure and Cervus on October 31, 2011, Proventure
and Cervus have agreed to complete a series of transactions, including
the sale from Proventure to Cervus of certain real estate assets that
Cervus currently leases from Proventure for the purposes of operating
Cervus' agricultural and construction equipment dealerships, for
consideration equal to approximately $25.90 million. From Proventure's
perspective, the transactions are necessary in order for Proventure to
qualify for the real estate investment trust exemption to the SIFT
rules under the Income Tax Act (Canada).
Following the completion of certain of those previously announced
transactions, on December 9, 2011 Proventure announced a special cash
distribution to Proventure unitholders of record at the close of
business on December 21, 2011 of $1.41 per unit. On December 14, 2011,
Proventure announced that this December 2011 cash distribution will be
paid to Proventure unitholders on or about December 28, 2011. The
source of the funds for this December 2011 cash distribution is the
cash portion of the proceeds from repayment by ProDev Trust of a
promissory note issued in 2010 in consideration for the purchase of
certain assets by ProDev from Proventure.
For the sale of the assets from Proventure to Cervus, Proventure has
received conditional approval from the TSX Venture Exchange and
received the approval of its disinterested unitholders at a meeting
held on December 21, 2011. It is anticipated that the sale will be
completed in early January 2012. Proventure has agreed, following
completion of the sale of the assets to Cervus, to declare a special
cash distribution to its unitholders in January 2012 in an amount to be
determined. The source of the funds for the January 2012 cash
distribution is expected to be the cash portion of the proceeds from
the asset disposition. Proventure estimates the amount of the January
2012 cash distribution will be approximately $1.70, bringing the total
amount of combined distributions (i.e. the December 2011 cash
distribution plus the anticipated January 2012 cash distribution) to
$3.10.
Once these distributions are made, Proventure estimates that it will
have a net book value per unit of approximately $0.25.
Proventure encourages unitholders to refer to the press release dated
October 31, 2011 for more information.
Proventure is an open-ended mutual fund trust established under laws of
the Province of Alberta. Proventure is in the business of owning and
leasing commercial real estate and provides financing and leases real
estate to Cervus Equipment Corporation. The units of Proventure are
listed on the TSX Venture Exchange and trade under the symbol "PVT.UN".
This press release contains forward-looking statements subject to
various risk factors and uncertainties, which may cause the actual
results, performances or achievements of Proventure to be materially
different from any future results, performances or achievements
expressed or implied by such forward-looking statements.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
For further information:
| Peter Lacey - President & CEO of Proventure Income Fund Telephone: (403) 567-0339 Fax: (403) 567-0392 Email:placey@cervuscorp.com | | | | | | Randy Muth - Chief Financial Officer of Proventure Income Fund Telephone: (403) 567-0339 Fax: (403) 567-0392 Email:rmuth@cervuscorp.com |
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