RED DEER, AB, Dec. 22 /CNW/ - Parkland Income Fund ("Parkland" or the
"Fund") (TSX: PKI.UN), Canada's largest independent fuel distributer
and marketer, today announced that upon its conversion to Parkland Fuel
Corporation (the "Corporation") it will launch new incentives for its
Dividend Reinvestment Plan (DRIP) which will provide shareholders with
new options to participate in the company's growth while maximizing
value. In addition to the option of receiving a monthly cash dividend
of $0.085, investors who wish to reinvest their dividends in the
Corporation will be able to access the following new options:
The Premium Dividend™ - Paid in cash, this provides eligible
shareholders with a 2% cash premium on top of their regular cash
dividend and is well suited to most income-oriented investors; or
Dividend Reinvestment - Shareholders receive a 5% discount on shares
purchased through the Dividend Reinvestment Plan which is well suited
to most value-oriented investors.
Those shareholders who do not elect to participate in either component
of the plan will still receive their regular monthly dividend of $0.085
"These enhancements to our Dividend Reinvestment Plan provide investors
with new options to maximize their investment in Parkland," said Mike
Chorlton, Parkland's President and Chief Executive Officer. "The
Premium Dividend™ and Dividend Reinvestment incentive programs will
allow shareholders to participate in raising equity capital in a manner
that is beneficial to them financially, and beneficial to Parkland
because it is a very low-cost means of raising capital, which will help
finance our future growth and rebalance our debt:equity relationship
Shareholders interested in participating in either of these options can
find more information below or at Parkland's website: http://www.parkland.ca/internet/investor-relations/about-pki-units/drip.html.
Participation in the new Premium Dividend™ and Dividend Reinvestment
Plan of the Corporation (the "Plan"), which will be implemented in
January, is optional. Eligible shareholders will be able to elect to
participate in the Plan commencing with the January 2011 dividend that
will be payable to shareholders in February 2011.
By enrolling in the Plan eligible shareholders will direct that their
cash dividends be reinvested in additional common shares of the
Corporation. Such additional shares will be issued from treasury at a
5% discount to the Average Market Price (as defined in the Plan) on the
applicable dividend payment date. Under the Dividend Reinvestment
component of the Plan, additional shares acquired on the reinvestment
of dividends will be credited to the accounts of participating
shareholders. Under the Premium Dividend™ component of the Plan, the
additional shares acquired on the reinvestment of dividends will be
delivered to the designated Plan Broker in exchange for a premium cash
payment equal to 102% of the reinvested amount. Canaccord Genuity
Corp. will act as the Plan Broker for the Premium Dividend™ component
of the Plan.
Parkland's current distribution reinvestment plan will be terminated in
connection with completion of its corporate conversion. Any
unitholders of the Fund who wish to enroll in the new Plan of the
Corporation must do so in accordance with the procedures described
below. Prior participation in the Fund's distribution reinvestment
plan will not automatically result in participation in the Plan of the
Eligible REGISTERED shareholders who wish to enroll in either component
of the new Plan must deliver a completed enrollment form to Valiant
Trust Company specifying which component of the Plan they wish to
participate in. An enrollment form must be received before 3:00 p.m.
(Calgary time) on the business day immediately preceding a dividend
record date in order for the cash dividend to which the record date
relates to be reinvested under the Plan, and will thereafter be
effective for all future dividends until participation in the Plan is
terminated or the shareholder changes their election between the Plan
components by delivering a new enrollment form. Once a registered
shareholder is enrolled in the Plan, a new enrollment form is required
only if the shareholder wishes to change their election between the
Plan components. A copy of the enrollment form is available from
Valiant Trust Company, as Plan Agent, through their website at www.valianttrust.com or by calling 1-866-313-1872, or from Parkland through its website at www.parkland.ca or by calling 403-357-6400.
Eligible BENEFICIAL shareholders (i.e., owners of shares that are held
through a broker or other nominee) who wish to participate in the Plan
must provide appropriate enrollment instructions to the broker,
investment dealer, financial institution or other nominee through which
they hold their shares, and should consult such nominee as to any
applicable pre-record date enrollment deadlines.
The Plan is currently available only to shareholders resident in
Canada. Unless otherwise announced by Parkland, shareholders who are
not resident in Canada may not participate, directly or indirectly, in
either component of the Plan.
A complete copy of the Plan, together with a related series of Questions
and Answers and the enrollment form, are posted on Parkland's website
at www.parkland.ca. Copies may also be obtained by contacting Parkland at 403-357-6400 or
by email at email@example.com.
Shareholders should carefully read the complete text of the Plan before
making any enrollment decisions.
The Corporation reserves the right to limit the amount of new equity
available under the Plan on any particular dividend payment date.
Accordingly, participation may be prorated in certain circumstances.
In the event of proration, or if for any other reason a dividend cannot
be reinvested under the Plan, in whole or in part, a participating
shareholder will be entitled to receive from the Corporation the
regular cash dividend for each share in respect of which the dividend
is payable but which cannot be reinvested under the Plan in accordance
with the shareholder's election.
No commissions, service charges or similar fees will be payable by Plan
participants in connection with the purchase of new shares from
treasury under the Plan. Beneficial shareholders should contact the
broker, investment dealer, financial institution or other nominee
through who holds their shares to confirm whether the nominee charges
any fees to enroll or participate in the Plan on their behalf.
Participation in the Plan does not relieve shareholders of any liability
for taxes that may be payable in respect of dividends reinvested in new
shares or shares sold on your behalf under the plan. Shareholders
should consult their tax advisors concerning the tax implications of
their participation in the Plan having regard to their particular
Forward Looking Information
Certain information included herein is forward-looking. Forward-looking
statements include, without limitation, statements regarding the future
financial position, business strategy, budgets, projected costs,
capital expenditures, financial results, taxes, effectiveness of
internal controls, sources of funding of growth capital expenditures,
conversion of Parkland to a corporate structure, anticipated dividends
and the amount thereof, if any, to be declared by Parkland Fuel
Corporation, expectations regarding the implementation of Parkland's
new ERP system and plans and objectives of or involving Parkland. Many
of these statements can be identified by looking for words such as
"believe", "expects", "expected", "will", "intends", "projects",
"projected", "anticipates", "estimates", "continues", or similar words
and include but are not limited to, statements regarding the accretive
effects of the acquisition and the anticipated benefits of the
acquisition. Parkland believes the expectations reflected in such
forward-looking statements are reasonable but no assurance can be given
that these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon.
Forward-looking statements are not guarantees of future performance and
involve a number of risks and uncertainties some of which are described
in the Fund's annual report, annual information form and other
continuous disclosure documents. Such forward-looking statements
necessarily involve known and unknown risks and uncertainties and other
factors, which may cause the Fund's actual performance and financial
results in future periods to differ materially from any projections of
future performance or results expressed or implied by such
forward-looking statements. Such factors include, but are not limited
to: general economic, market and business conditions; industry
capacity; competitive action by other companies; refining and marketing
margins; the ability of suppliers to meet commitments; actions by
governmental authorities including increases in taxes; changes in
environmental and other regulations; and other factors, many of which
are beyond the control of Parkland. Any forward-looking statements are
made as of the date hereof and the Fund does not undertake any
obligation, except as required under applicable law, to publicly update
or revise such statements to reflect new information, subsequent or
About Parkland Income Fund
Parkland Income Fund is Canada's largest independent fuel distribution
and marketing company, delivering fuel products from regional
refineries to retail, commercial and reseller customers
coast-to-coast. Through its network of 620 retail locations, 77
commercial branches, 71 cardlock locations and through wholesale
agreements, the Company distributes 3.4 billion litres of fuel
annually, representing 4.7% of the total Canadian fuel market (market
share in some regions of operation is higher).
Parkland currently distributes fuel to retail customers under its Fas
Gas Plus, Fas Gas and Race Trac brands as well as through distribution
agreements with 293 Esso locations. Parkland also supplies propane,
bulk fuel, heating oil, lubricants, industrial fluids and associated
services to commercial and industrial customers across Canada under the
Neufeld, United Petroleum, Columbia Fuels, Bluewave Energy and Great
Northern Oil brands.
Parkland offers investors a balance of yield and growth. The Company is
delivering value to unitholders by growing fuel volumes through
carefully selected acquisitions, working closely with suppliers to
achieve a material cost advantage and achieving greater efficiency
through operational excellence.
Parkland units and convertible debentures trade on the Toronto Stock
Exchange (TSX) under the symbols PKI.UN and PKI.DB. For more
information visit www.parkland.ca.
SOURCE Parkland Fuel Corporation
For further information: For further information:
For investor and media inquiries, or to be added to the email news alert service, please contact Mike W. Chorlton, President and CEO; Ken J. Grondin, Senior Vice President and CFO; or Tom McMillan, Investor Relations Manager at 403-357-6400 or firstname.lastname@example.org.