TORONTO, Oct. 15 /CNW/ - MINT Income Fund (the "Fund") is pleased to
announce that it has filed a preliminary prospectus in connection with an
offering of Rights to its unitholders to subscribe for Units (the "Rights
Offering"). Three Rights will entitle the holder to purchase one MINT Unit.
Each holder of Rights who has initially subscribed for all of the Units to
which that holder is entitled under the Basic Subscription Privilege may
subscribe for any number of additional Units at a price equal to the
subscription price for each additional Unit, subject to availability. The
directors and officers of the Manager intend to exercise all their Rights to
acquire Units under the Basic Subscription Privilege.
The subscription price, record date and Rights expiration date have not
yet been determined. The Fund will make a further announcement in respect of
these matters subsequent to the filing of the final prospectus. The Rights
Offering is subject to receipt of all regulatory approvals, including the
approval of the Toronto Stock Exchange. The net proceeds of the Rights
Offering will be invested by the Fund in accordance with the investment
objectives of the Fund.
The Fund's investment objectives are to provide holders of its Units with
(i) a high level of sustainable income distributed monthly, and (ii) a
cost-effective method of reducing the risk of investing in high income
securities. The Fund diligently selects and actively manages a diversified
portfolio of high income securities across a broad range of specialized
investment vehicles in various industries and geographic regions. On an
annualized basis, the current distribution rate of $1.20 per Unit represents a
cash-on-cash yield of approximately 10.1% based on a Unit market price of
$11.83 as at October 4, 2007. The Fund anticipates that this distribution rate
of $1.20 per Unit will be maintained over the next 12 months. As at August 31,
2007, the annualized returns for the Fund (assuming the reinvestment of
distributions) were 18.6% for 3 years, 22.2% for 5 years, 13.6% since
inception and 11.1% for the year-to-date period.
Certain statements in this press release may constitute forward-looking
information, including statements regarding cash-on-cash yield.
Forward-looking statements are subject to various risks and uncertainties that
could cause estimates to differ materially from the expectations expressed,
including the risk that the per Unit distributions may decrease below the
amount used in calculating the cash-on-cash yield, which could occur for
various reasons beyond the control of the Fund such as a decrease in the
distributions paid by the issuers of securities included in the Fund's
portfolio or a change in general economic conditions. 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: or to obtain a copy of the prospectus, please
contact your financial advisor or Middlefield Group toll-free, at
1-888-890-1868, or www.middlefield.com