TORONTO, Sept. 17 /CNW/ - Middlefield Group, on behalf of MAXIN Income
Fund, announces that a special distribution will be paid to holders of record
as at the close of business on September 26, 2007. This special distribution
will be paid by way of additional Units, based on the net asset value per Unit
on September 26, 2007. Subject to a final review of the Fund's taxable income
for the period ended September 26, 2007, it is expected that the special
distribution will be $0.50 per Unit.
This special distribution is the result of two factors. First, the Fund's
strong performance during the 2007 year-to-date has been accompanied by
significant realized capital gains. Specifically, the total return for MAXIN
for the seven months ended July 31, 2007, based on net asset value, was 7.3%.
Second, the Fund's Declaration of Trust requires that all taxable income be
paid to Unitholders prior to the end of its taxation year. Since MAXIN will be
merging with YIELDPLUS Income Fund on September 27, 2007, its year end for tax
purposes is deemed to be September 26, 2007 resulting in the requirement to
make the special distribution at this time. There are no special distributions
required for any of the other funds that are merging into YIELDPLUS on
September 27, 2007.
Immediately after the issuance of the additional Units, the outstanding
Units of the Fund will be consolidated such that the number of Units will
remain unchanged from the number outstanding immediately prior to the special
distribution. A Unitholder will be required to include the amount of the
special distribution in income, most of which will be in the form of capital
gains, and this same amount also will be added to the adjusted cost base of
the Units held by such Unitholder thereby reducing taxable capital gains that
may be realized on future dispositions of the Units held by such Unitholder.
MAXIN trades on the Toronto Stock Exchange under the symbol MXZ.UN.
This press release contains forward-looking information which is based on
historical information. Actual future results, including the amount of the
special distribution, may differ materially from the special distribution
currently expected to be paid. The risks, uncertainties and other factors that
could influence actual results are described in the Fund's prospectus dated
March 28, 2003 and other documents filed by the Fund with the Canadian
securities regulatory authorities. The forward-looking information contained
in this press release constitutes the Fund's current estimate, as of the date
of this press release, with respect to the matters covered hereby. Investors
and others should not assume that any forward-looking statement contained in
this press release represents the Fund's estimate as of any date other than
the date of this press release.
For further information:
For further information: please visit our website at www.middlefield.com
or contact the undersigned: Nancy Tham, Senior Vice President, (416) 847-5349