TORONTO, Dec. 7, 2018 /CNW/ - Specialty Foods Group Income Fund (the "Fund") is providing an update today as to the reserve amount that is held in trust and available for future distribution to Fund unitholders. As at November 30, 2018, approximately Cdn.$36.4 million continues to be held in trust on an interest bearing basis by the Fund, which amount includes net cash proceeds received by the Fund from the previously announced sale of Specialty Foods Group, LLC ("SFG"). In addition, it is possible that the Fund will receive up to approximately US$2.2 million from escrowed funds at different time intervals until 2020 from the sale of SFG to the extent such funds are not required to satisfy closing adjustments, warranty claims and other indemnity amounts.
The amount held by the Fund in trust, along with any future amounts received by the Fund, will be distributed by the Fund to unitholders once the Fund has addressed its contingent liabilities. In light of its contingent liabilities, the Fund has received advice that it is not prudent to make a distribution at this time. As previously announced, the timing of any distribution to the Fund unitholders will depend upon, among other things, receipt of tax clearance certificates.
The Fund will continue to provide details to unitholders from time to time as to the reserve amount available for distribution to Fund unitholders as well as the anticipated timing of such distributions.
This press release contains forward-looking information within the meaning of applicable securities laws that reflects the current expectations of the trustee of the Fund. The words "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "project", "continue", "predict", "potential", or the negative of these terms or other similar expressions have been used to identify such forward-looking information.
Forward-looking information is based upon a number of assumptions and is subject to a number of known and unknown risks and uncertainties, many of which are beyond the Fund's control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Certain factor(s) could cause actual results to differ materially from those discussed in the forward looking information.
This forward-looking information represents the trustee's understanding as of the date of this press release. While subsequent events and developments may cause such understanding to change, the Fund does not intend to update this forward-looking information, except as required by applicable securities laws.
SOURCE Specialty Foods Income Group Fund
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