EDMONTON, Dec. 8 /CNW/ - Carfinco Income Fund ("Carfinco" or the "Fund") today announced a monthly cash distribution of 1.5 cents per unit for December 2009. Carfinco also announced a cash distribution of 10.5 cents per unit and a unit distribution valued at 6.41 cents per unit for a total special distribution of 16.91 cents per unit. This brings Carfinco's total distributions to 24.41 cents per unit for 2009.
The cash and unit distributions have a payable date of December 31, 2009, to unitholders of record on December 18, 2009. The ex-distribution date is December 16, 2009.
"We are pleased to make this special distribution to our unitholders to ensure the Fund distributes all of its taxable income, as per its Deed of Trust," stated Tracy Graf, President and CEO of the Fund. "After the challenges the Fund faced in 2008, which resulted in the decision to halt cash distributions, the Board of Trustees found it prudent to reinstate a conservative monthly distribution in August of this year. We expect that decisions on future monthly cash distributions will remain conservative as the Board monitors the economic recovery in Canada and the financial results of the Fund."
With respect to the unit distribution, under the Deed of Trust that governs the Fund, the number of units allotted to unitholders is determined by calculating the weighted average closing trading price of the units during the ten business days immediately preceding the record date of December 18, 2009. As this calculation cannot be completed until after the close of business on December 17, 2009, the Fund will issue a news release on the record date of December 18, 2009 to provide details of the unit distribution.
The cash and units to be distributed are based on an estimate by the Board of Trustees of the year-end taxable income of the Fund. These results are subject to change as a result of the reviews conducted by the Fund's auditors, audit committee and the Board of Trustees. The unit distribution is also subject to TSX acceptance.
About Carfinco Income Fund
Carfinco focuses on providing consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plan to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The units of the Fund trade on The Toronto Stock Exchange under the symbol "CFN.UN".
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Fund. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.
SOURCE Carfinco Financial Group Inc.
For further information: For further information: Mr. Tracy A. Graf, CEO & Trustee of Carfinco Income Fund, Telephone: 1-888-486-4356, Facsimile: 1-888-486-7456, E-mail: email@example.com; OR The Howard Group Inc., Jeff Walker, Bob Beaty, Investor Relations, Telephone: 1-888-221-0915, Telephone: (403) 221-0915, E-mail: Info@howardgroupinc.com, Website: www.howardgroupinc.com