RED DEER, AB, Dec. 31 /CNW/ - Parkland Fuel Corporation ("Parkland" or
the "Corporation") (TSX: PKI), Canada's largest independent fuel
distributer and marketer, today announced that it has completed the
previously announced reorganization of Parkland Income Fund (the
"Fund") to a corporation (the "Conversion") pursuant to a plan of
arrangement under the Business Corporations Act (Alberta).
The Conversion was approved at the annual and special meeting of
securityholders (the "Meeting") of the Fund held on May 3, 2010, with
more than 99 per cent of the securities represented at the Meeting
voting in favour of the Conversion. In addition, the Court of Queen's
Bench of Alberta issued its final order approving the Conversion on May
4, 2010. Pursuant to the Conversion, all outstanding units of the Fund
and all outstanding class B units and class C units of Parkland
Holdings Limited Partnership were exchanged for common shares in the
capital of the Corporation (the "Common Shares") on a one-for-one
All of the of the covenants and obligations of the Fund under the 6.5%
series 1 convertible unsecured subordinated debentures of the Fund (the
"Series 1 Debentures") and the 5.75% convertible unsecured subordinated
debentures of the Fund (the "Series 2 Debentures", together with the
Series 1 Debentures, the "Debentures") were assumed by the Corporation
in connection with closing.
The Common Shares, Series 1 Debentures and Series 2 Debentures of
Parkland are expected to commence trading on the Toronto Stock Exchange
(the "TSX"), under the symbols "PKI", "PKI.DB" and "PKI.DB.A",
respectively, on or about January 7, 2011. While this is several days
into the new year, the Corporation does not anticipate that investors
will be affected by this delay as trades can still be carried out under
the "PKI.UN" symbol.
The transition process is expected to be seamless as trades carried out
under the "PKI.UN" symbol will be settled once the Corporation's shares
begin to trade under the "PKI" symbol. No impact to trading liquidity
is expected as a result of the conversion. Concurrently with the
commencement of trading of the Common Shares, the trust units of the
Fund will be delisted from the TSX. The commencement of trading of the
Common Shares and the Debentures is subject to the Corporation
satisfying the listing requirements of the TSX.
Termination of Existing Dividend Reinvestment Plan
In connection with the completion of the Conversion, the Fund terminated
its existing distribution reinvestment plan (the "Fund DRIP") and all
whole trust units of the Fund held on behalf of participants under such
plan (the "Participants") were converted into an equivalent number of
Common Shares in accordance with the Conversion. Entitlements to a
fraction of a trust unit of the Fund under the Fund DRIP will be
converted to cash and paid to Participants in accordance with the terms
of the Fund DRIP. Participants seeking further information with
respect to their entitlements under the Fund DRIP may contact the
trustee under the Fund DRIP, Valiant Trust Company.
Investors enrolled in the Fund DRIP will not automatically be enrolled
in the New Dividend Reinvestment Plan, and must enrol in the new plan
by submitting the enrolment form described below.
New Dividend Reinvestment Plan
In connection with the completion of the conversion, Parkland launched
the new Premium Dividend™ and Dividend Reinvestment Plan of the
Corporation (the "Plan") as previously announced on December 22, 2010.
In addition to the option of receiving a monthly cash dividend of
$0.085, shareholders of the Corporation ("Shareholders") who wish to
participate in the Plan will be able to access the following new
The Premium Dividend™ - Paid in cash, this provides eligible
Shareholders with a 2% cash premium on top of their regular cash
dividend and is well suited to most income-oriented investors; or
Dividend Reinvestment - Shareholders receive a 5% discount on shares
purchased through the Dividend Reinvestment Plan which is well suited
to most value-oriented investors.
Shareholders interested in participating in either of these options can
find more information below or at Parkland's website: http://www.parkland.ca/internet/investor-relations/about-pki-units/drip.html.
A copy of the enrollment form is available from Valiant Trust Company
through their website at www.valianttrust.com or by calling 1-866-313-1872, or from Parkland through its website at www.parkland.ca or by calling 403-357-6400.
Cautionary Statement Regarding Forward-Looking Information and
Certain statements contained in this news release, including statements
that contain words such as "could", "should", "can", "anticipate",
"estimate", "propose", "plan", "expect", "believe", "will", "may" and
similar expressions and statements relating to matters that are not
historical facts constitute "forward-looking information" within the
meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the "safe harbor"
provisions of the United States Private Securities Litigation Reform
Act of 1995 (collectively, "forward-looking information and
In particular, this news release contains forward-looking information
and statements relating to the expectations of the Corporation
regarding the commencement of trading on the TSX of the Common Shares
and Debentures of Parkland and the delisting of the trust units and
debentures of the Fund from the TSX.
These forward-looking information and statements are based on certain
assumptions and analysis made by the Corporation in light of its
experience and its perception of historical trends, current conditions
and expected future developments as well as other factors it believes
are appropriate in the circumstances. However, whether actual results,
performance or achievements will conform to the Corporation's
expectations and predictions is subject to a number of known and
unknown risks and uncertainties which could cause actual results to
differ materially from the Corporation's expectations. Such risks and
uncertainties include, but are not limited to the Corporation's ability
to satisfy the listing requirements of the TSX and that the
commencement of the trading on the TSX of the Common Shares and
Debentures of Parkland and the delisting of the trust units and
debentures of the Fund from the TSX will not occur. Consequently, all
of the forward-looking information and statements made in this news
release are qualified by these cautionary statements and there can be
no assurance that the actual results or developments anticipated by the
Corporation will be realized or, even if substantially realized, that
they will have the expected consequences to, or effects on, the
Corporation or its business or operations. Readers are therefore
cautioned not to place undue reliance on such forward-looking
information and statements. Except as may be required by law, the
Corporation assumes no obligation to update publicly any such
forward-looking information and statements, whether as a result of new
information, future events or otherwise.
About Parkland Fuel Corporation
Parkland Fuel Corporation ("Parkland") is Canada's largest independent
marketer and distributer of fuels, managing a nationwide network of
sales channels for retail, commercial, wholesale and home heating fuel
customers. Parkland's mission is to be the most trusted source of
convenience for fuel and related products focused on non-urban
markets. Our family of brands includes: Bluewave Energy, Columbia
Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United
Petroleum Products, Fas Gas Plus and Race Trac Gas. We are Canada's
local fuel company, delivering competitive fuel products and serving
Canadian communities through local operators who care. For more
information please visit www.parkland.ca.
SOURCE Parkland Fuel Corporation
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For investor and media inquiries, or to be added to the email news alert service, please contact Tom McMillan, Investor Relations Manager at 403-356-6722 or email@example.com.