CALGARY, Dec. 29, 2014 /CNW/ - Dixie Energy Trust ("Dixie" or the "Trust") announced that at the annual and special meeting of the holders (the "Unitholders") of Dixie trust units (the "Trust Units") held earlier today (the "Meeting"), Unitholders voted to approve (35,490,352 votes cast with 99.92% votes in favour and 99.78% in favour after excluding the votes of certain excluded Unitholders) the previously announced sale of all or substantially all of the assets of the Trust to Gulf Pine Energy Partners, LP, for total cash consideration of US$47,500,000, subject to adjustment in certain circumstances (the "Sale Transaction") and the winding-up of the Trust, including the liquidation of the Trust and distribution to Unitholders, on a pro-rata basis, of the cash proceeds of the sale of the Trust's assets after provision for payment, retirement or discharge of all of the Trust's obligations and liabilities (the "Winding-Up").
Following the Meeting, the Sale Transaction was closed and the Trust indirectly received proceeds of US$47,480,822. As described in the management information circular (the "Circular") dated December 2, 2014, prepared in connection with the Meeting, which is available on SEDAR at www.sedar.com, the board of directors of the Administrator estimates that after completion of the Sale Transaction, pursuant to the Winding-Up, Unitholders will receive an aggregate of between $0.46 and $0.52 in cash per Trust Unit based upon approximately 56,841,000 Trust Units issued and outstanding (after giving effect to the exchange of certain exchangeable securities). The amount and timing of distribution to Unitholders are subject to a number of factors and risks which are fully described in the Circular.
Computershare Trust Company of Canada, as administrative agent of Olympia Trust Company, the trustee (the "Trustee") of the Trust will proceed with the appointment of Ernst & Young Inc. as the claims administrator (the "Claims Administrator") of the Trust in connection with the Winding-Up and intends to apply to the Court of Queen's Bench of Alberta for the appointment of the Claims Administrator and to establish the Winding Up Procedure as described in the management information circular dated December 2, 2014.
Further information regarding the Winding-Up of the Trust will be provided to Unitholders in due course. Additional information is available on Dixie's website at DixieEnergyTrust.com.
Forward Looking Statement Disclaimer
Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to the process of Winding-Up of the Trust (including timing of commencement and completion thereof); the appointment of Ernst & Young Inc. as Claims Administrator; and the anticipated distribution of cash proceeds (after provision for the Trust's obligations and liabilities) including the anticipated amount thereof (on a Trust Unit basis).
Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Dixie believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because Dixie can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, that the Unitholders will receive the anticipated proceeds from the remaining cash assets, Ernst & Young Inc. will be appointed Claims Administrator, and Dixie's analysis of the Trust's obligations including tax and other liabilities of the Trust is accurate. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.
Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Dixie and described in the forward looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things, the ability to subsequently proceed with the Winding-Up on a timely basis (or at all) including the distribution of its remaining assets to its Unitholders and the amount of any such distribution and the appointment of Ernst & Young Inc. as Claims Administrator. The actual results, performance or achievement could differ materially from those expressed in or implied by these forward looking statements, and, accordingly, no assurance can be given that any of the events anticipated to occur or transpire as described in the forward looking statements will provide any benefits to the Trust or the Unitholders. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties. Additional information on these and other factors that could affect Dixie's operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
The forward looking statements or information contained in this news release are made as of the date hereof and Dixie undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this news release are expressly qualified by this cautionary statement.
© 2014 Dixie Energy Trust
All rights reserved
All other trademarks are the property of their respective owners
Unless otherwise indicated all dollar amounts in this press release are in Canadian dollars.
SOURCE: Dixie Energy Trust
For further information: Ian Atkinson, President & CEO, T: 403 232 1010