LONGUEUIL, QC, Feb. 17 /CNW Telbec/ - Innergex Power Income Fund (TSX: IEF.UN) (the "Fund") has declared today its February cash distribution in the amount of $0.08334 per trust unit, representing $1.00 on an annual basis. This distribution is for the period between February 1, 2010 and February 28, 2010. The distribution will be paid on March 25, 2010 to the unitholders of record at the close of business on Friday, February 26, 2010.
As announced on February 1, 2010, the Fund has entered into a definitive agreement with Innergex Renewable Energy Inc. (TSX: INE) ("INE") to undertake, subject to customary closing conditions and pursuant to a statutory plan of arrangement, a strategic combination of the two entities (the "Combination") whereby the Fund will acquire INE by way of a reverse take-over, thereby effecting at the same time the conversion of the Fund to a corporation. Assuming that all conditions precedent to the Combination are satisfied or waived, the Combination is expected to become effective on or about March 29, 2010.
Following the effective date of the Combination, each Fund unitholders entitled to receive INE common shares will also be entitled to receive an amount equal to $0.00274 per Fund unit multiplied by the number of days from March 1, 2010 to the effective date of the Combination, inclusively. Following the completion of the Combination, it is intended that INE will establish a dividend policy $0.58 per common share of INE, per annum, payable quarterly (equivalent to approximately $0.85 per Fund Unit). It is intended that the first quarterly payment will take into consideration the number of days from the effective date of the Combination to the end of the month of March.
Innergex Power Income Fund is an open-ended income trust that indirectly owns interests in 10 hydroelectric power-generating facilities and two wind farms. The Fund's net installed capacity is 210 MW. Approximately 27% of total annual production comes from wind energy. The Fund's units are traded on the Toronto Stock Exchange under the symbol IEF.UN. The hydroelectric facilities and wind farms are managed by Innergex Renewable Energy Inc., the manager, under long-term agreements with the Fund.
This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information can generally be identified by the use of words and phrases, such as "may", "will", "anticipates", "expects", "intends" or "believes", or variations of such words and phrases that state that certain events will occur.
The forward-looking information is based on certain key expectations and assumptions made by the Fund, including expectations and assumptions concerning the timing of receipt of the requisite securityholder, court, regulatory and other third party approvals. Although the Fund believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Fund can give no assurance that they will prove to be correct.
Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks that are inherent in the nature of the Combination, including failure to obtain the requisite securityholder, court, regulatory and other third party approvals.
The forward-looking information contained in this press release is made as of the date hereof and the Fund undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE INNERGEX POWER INCOME FUND
For further information: For further information: Ms. Édith Ducharme, LL.L., Director - Financial Communications and Investor Relations, Innergex Renewable Energy Inc., Manager of the Fund, (450) 928-2550, ext. 222, email@example.com; www.innergex.com