TORONTO, Feb. 11 /CNW/ - The Board of Directors of SCITI ROCS Limited, in its capacity as Trustee for SCITI ROCS Trust (the "Trust" or "SCITI ROCS"), announced today that it is calling a meeting of holders ("Unitholders") of SCITI ROCS units ("Units") to consider a proposal to reorganize the Trust. The reorganization will involve (i) an extension of the originally scheduled redemption date to May 18, 2015, (ii) the creation of a special retraction right on May 18, 2010 and (iii) an amendment to the investment mandate of the Trust. In addition, it is the intention of the Board of Directors to issue warrants for all Units outstanding within 90 days of a successful reorganization.
As part of the reorganization, the Trust will change its investment mandate to gain exposure to the 50 highest yielding issuers included in the Scotia Capital High Yielding Equity Index (the "Scotia HYE Index") on an equal weight basis subject to a maximum weighting in any one sector of 25%. The Scotia HYE Index has been designed to provide investors with exposure to the highest yielding securities on the Toronto Stock Exchange, regardless of corporate structure, subject to certain quality screens. The Board of Directors believes that the amended portfolio should provide Unitholders with exposure to a well diversified, high yielding portfolio that is responsive to changes in the income trust market and the pending tax changes that will affect most income trusts in 2011.
A special meeting of Unitholders has been called and will be held on April 15, 2010 to consider and vote on the reorganization. Details of the proposed reorganization will be outlined in an information circular to be prepared and delivered to Unitholders in connection with the special meeting and will be available on www.sedar.com. The reorganization will be subject to receipt of all necessary regulatory approvals. Regardless of how a Unitholder votes, under the proposed reorganization each Unitholder will be entitled to retract their Units on May 18, 2010 and receive 100% of the net asset value. If the extension is not approved at the meeting, the Trust will terminate as scheduled on or about May 18, 2010.
The Trust is an investment trust which provides investors with tax-efficient monthly distributions and low cost diversification through an approximately equally weighted portfolio of income funds included in the Scotia Capital Income Trust Index as adjusted to exclude any income fund having a float capitalization of less than $200 million.
Trust units of SCITI ROCS are listed for trading on The Toronto Stock Exchange under the symbol SCI.UN.
Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and anticipated results. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," and similar expressions. These forward-looking statements are based on current expectations and assumptions which are believed to be reasonable as at the date of this statement and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
SOURCE SCITI ROCS Trust
For further information: For further information: Investor Relations, SCITI ROCS Limited, Trustee of SCITI ROCS, (416) 863-7251, E-mail: email@example.com, Web site: www.scotiamanagedcompanies.com