CALGARY, April 21 /CNW/ - COMPASS Income Fund ("COMPASS" or the "Fund") is pleased to announce that it has closed the offering of Rights to its Unitholders raising gross proceeds of $53,292,483 (5,609,735 Units), being the maximum permitted under the offering. Each Unitholder was given one Right for each Unit held on March 19, 2010. One Right entitled the holder to purchase one COMPASS Unit at a price of $9.50 until 4:00 p.m. (Toronto time) on April 16, 2010. The directors and officers of the Manager exercised all their Rights to acquire Units under the Basic Subscription Privilege. The Rights Offering was significantly oversubscribed.
The net proceeds of the Rights Offering will be invested by the Fund in accordance with its investment objectives. The Fund's investment objectives are: (i) to pay monthly distributions to holders of Units; and (ii) to return at least the original issue price of the Units (being $10.00 per Unit) to Unitholders upon termination of the Fund. The Fund is invested in an actively managed, diversified portfolio comprised primarily of high yielding equity securities of issuers operating in various industries and geographic regions.
COMPASS Income Fund trades on the Toronto Stock Exchange under the symbol CMZ.UN.
Certain statements in this press release may constitute forward-looking information, including statements regarding use of proceeds. Forward-looking statements are subject to various risks and uncertainties that could cause estimates to differ materially from the expectations expressed, which could occur for various reasons beyond the control of the Fund such as a change in general economic conditions. The forward-looking information contained in this press release constitutes the Fund's current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund's estimate as of any date other than the date of this press release.
SOURCE COMPASS Income Fund
For further information: For further information: or to obtain a copy of the prospectus, please visit our website at www.middlefield.com or contact Nancy Tham, Senior Vice-President, at (416) 847-5349 or toll-free at 1-888-890-1868