TORONTO, Feb. 6, 2013 /CNW/ - UTILITY CORP. (the "Company") announced today that it is calling a meeting of holders of Utility Corp. shares ("Shareholders") to consider a proposal to extend the term of the Company. The extension will involve (i) extending the redemption date permitting Shareholders to hold their investment to May 21, 2018, (ii) adjusting and rebalancing the Company's portfolio; (iii) amending the articles to permit the Company to employ leverage of up to 20% of total assets, and (iv) the creation of a special retraction right to provide Shareholders who do not wish to extend their investment with the option of retracting their units as originally contemplated on May 21, 2013.
A special meeting of Unitholders has been called and will be held on April 5, 2013 to consider and vote on the extension. There is no guarantee that the proposal will be approved by Shareholders. Details of the proposed extension will be outlined in an information circular to be prepared and delivered to Shareholders in connection with the special meeting and which will be available on www.sedar.com. The extension will be subject to receipt of all necessary regulatory approvals.
About Utility Corp.
Shareholders are entitled to receive dividends as declared by the Board of Directors of Utility Corp. It is the Company's policy to declare and pay equal monthly dividends on the outstanding Class C Shares based on revenue received less expenses.
Utility Corp. is a mutual fund corporation whose investment portfolio consists of publicly listed securities of selected Canadian utility and telecommunication issuers. The Class C Shares of Utility Corp. are listed for trading on the Toronto Stock Exchange under the symbol UTC.C.
SOURCE: Utility Corp.
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