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VANCOUVER, Sept. 6, 2012 /CNW/ - WesternOne Equity Income Fund (the
"Fund" or "WesternOne") (Toronto Stock Exchange: WEQ.UN, WEQ.DB.B and
WEQ.DB.C) today announced that it has obtained a final order from the
Supreme Court of British Columbia approving the previously announced
plan of arrangement under Section 192 of the Canada Business Corporations Act to convert WesternOne's income trust structure to a publicly traded
corporation named WesternOne Inc. (the "Conversion").
Under the Conversion, unitholders will receive, on a tax-deferred basis,
one common share of WesternOne Inc. for each Fund unit held.
Non-resident unitholders should consult their own tax advisors as to
the tax consequences of the Conversion.
The existing convertible debentures of the Fund will become debentures
of WesternOne Inc. After the Conversion, the debentures will continue
to be convertible, but into common shares of WesternOne Inc. in the
same manner which they are now convertible into units of the Fund.
The current members of the board of directors of WesternOne Equity GP
Inc. and the board of trustees of the Fund are collectively the
directors of WesternOne Inc., for a total of five directors. It is
expected that the current officers and management of the Fund will
become officers and management of WesternOne Inc.
Subsequent to the closing the Conversion, which is expected to take
place on December 31, 2012, common shares of WesternOne Inc. will begin
trading on the Toronto Stock Exchange under the symbol "WEQ".
WesternOne Inc. is expected to pay a monthly dividend at the same level
as the Fund's current monthly distribution of $0.05 per unit ($0.60 per
unit annually) to allow for continued internally generated cash flow to
support growth while providing sustainable monthly dividends to
shareholders. The amount of any dividends payable by WesternOne Inc.
from time to time will be at the sole discretion of its board of
directors, and, consistent with the Fund's past practice, the level of
dividends will be evaluated periodically based on a number of factors,
including financial performance, future prospects and capital
requirements of the business.
Certain statements in this press release may constitute
"forward-looking" information that involves known and unknown risks,
uncertainties and other factors, and it may cause actual results,
performance or achievements or industry results, to be materially
different from any future results, performance or achievements or
industry results expressed or implied by such forward-looking
information. Forward-looking information is identified by the use of
terms and phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would", and similar terms and phrases, including references to
assumptions. Such information includes, without limitation, statements
with respect to: management of WesternOne Inc., the level of dividends
of WesternOne Inc., completion of the Conversion, tax treatment of
Canadian resident unitholders arising from the Conversion and certain
rights of holders of convertible debentures of the Fund arising as part
of the Conversion. Actual events or results may differ materially.
Forward-looking information contained in this press release is based on
certain key expectations and assumptions made by WesternOne, including,
without limitation, expectations and assumptions respecting: the
outlook of WesternOne's business and the economy in Western Canada and
the U.S., the supply and demand for WesternOne's products and services,
management's assessment of future plans and operations and WesternOne's
ability to complete the Conversion by the expected effective date.
Although the forward-looking information contained in this press
release is based upon what the WesternOne's management believes to be
reasonable assumptions, WesternOne cannot assure investors that actual
results will be consistent with such information. Forward-looking
information reflects current expectations of management regarding
future events and operating performance as of the date of this press
release. Such information involves significant risks and uncertainties,
should not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether or not such
results will be achieved. A number of factors could cause actual
results to differ materially from the results discussed in the
forward-looking information, and a description of these factors can be
found under "Risk Factors" in WesternOne's Annual Information Form
dated March 29, 2012 and Management's Discussion and Analysis dated
August 9, 2012, which are available on SEDAR (www.sedar.com).
The forward-looking information contained herein is expressly qualified
in its entirety by this cautionary statement. Forward-looking
information reflects management's current beliefs and is based on
information currently available to WesternOne. The forward-looking
information is made as of the date of this press release and WesternOne
assumes no obligation to update or revise such information to reflect
new events or circumstances, except as may be required by applicable
WesternOne seeks to acquire and grow businesses in the construction and
infrastructure services sectors in order to generate stable and growing
distributions to its unitholders as well as to achieve overall capital
Additional information relating to WesternOne, including WesternOne's
Annual Information Form and other public filings, is available on SEDAR
at www.sedar.com or on WesternOne's website at www.weq.ca.
Toronto Stock Exchange: WEQ.UN, WEQ.DB.B and WEQ.DB.C
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE: WesternOne Equity Income Fund
For further information:
Andrew Greig, Manager of Investor Relations
WesternOne Equity Income Fund
Suite 910, 925 West Georgia Street
Vancouver, BC V6C 3L2
Phone: (604) 678-4042