Algonquin Power Income Fund and Highground Capital Corp. announce completion of business combination

    TORONTO, Aug. 1 /CNW/ - Algonquin Power Income Fund ("APIF" or "Algonquin
Power") and Highground Capital Corp. ("Highground" or the "Company") have
completed the previously announced business combination transactions (the
"Transactions") whereby, among other things, Highground amalgamated with a
subsidiary of its manager and an Algonquin subsidiary, and shareholders of
Highground received 0.9749 trust units of Algonquin Power for each common
share formerly held in Highground. Algonquin Power issued approximately 
3.5 million trust units in connection with the Transactions and will receive
between $22.2 and $23.7 million in cash (dependent on the final proceeds of
realization of certain Highground investments) together with the return of
notes with an aggregate face value of approximately $4.8 million issued by
APIF affiliates related to its St. Leon and Brampton Cogeneration projects as
consideration. The common shares of Highground are in the process of being
de-listed from the TSX Venture Exchange.

    About Algonquin Power

    Algonquin Power is an open-ended investment trust that owns and has
interests in a diverse portfolio of renewable power generation and sustainable
infrastructure assets across North America, including 42 renewable energy
facilities, 12 thermal energy facilities, and 17 water distribution and
waste-water facilities. Algonquin Power was established in 1997 to provide
stable earnings through a diversified portfolio of renewable energy assets.
Algonquin Power's units and convertible debentures are traded on the Toronto
Stock Exchange under the symbols APF.UN, APF.DB and APF.DB.A and such units
are included in the S&P/TSX Composite Index.

    About Highground

    Highground Capital Corp. (now Highground Capital Inc. following
completion of the Transactions) actively pursues strategic growth
opportunities that meet critical long term community needs in the
infrastructure and renewable power sectors. The Company's activities are
typically supported by assets which generate strong recurring revenue streams.

    Forward Looking Statements

    Certain statements contained in the information herein are
forward-looking and reflect the views of APIF and Algonquin Power Management
Inc. (the "Manager") with respect to future events. Since forward-looking
statements address future events and conditions, by their very nature, they
involve inherent risks and uncertainties. Forward-looking statements are not
guarantees of APIF's future performance or results and are subject to various
factors, including, but not limited to, assumptions such as those relating to:
the performance of APIF's assets, commodity market prices, interest rates, and
environmental and other regulatory requirements. Although APIF and its Manager
believe that the assumptions inherent in these forward-looking statements are
reasonable, undue reliance should not be placed on these statements, which
apply only as of the dates hereof. The Fund and its Manager are not obligated
nor do either of them intend to update or revise any forward-looking
statements, whether as a result of new information, future developments or

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

For further information:

For further information: Kelly Castledine, Algonquin Power Income Fund,
(905) 465-4500; Jeff Norman, President, Highground Capital Inc., (905)

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