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VANCOUVER, Sept. 6, 2012 /CNW/ - WesternOne Equity Income Fund (the "Fund" or "WesternOne") (Toronto Stock Exchange: WEQ.UN, WEQ.DB.B and WEQ.DB.C) today announced that it has obtained a final order from the Supreme Court of British Columbia approving the previously announced plan of arrangement under Section 192 of the Canada Business Corporations Act to convert WesternOne's income trust structure to a publicly traded corporation named WesternOne Inc. (the "Conversion").
Under the Conversion, unitholders will receive, on a tax-deferred basis, one common share of WesternOne Inc. for each Fund unit held. Non-resident unitholders should consult their own tax advisors as to the tax consequences of the Conversion.
The existing convertible debentures of the Fund will become debentures of WesternOne Inc. After the Conversion, the debentures will continue to be convertible, but into common shares of WesternOne Inc. in the same manner which they are now convertible into units of the Fund.
The current members of the board of directors of WesternOne Equity GP Inc. and the board of trustees of the Fund are collectively the directors of WesternOne Inc., for a total of five directors. It is expected that the current officers and management of the Fund will become officers and management of WesternOne Inc.
Subsequent to the closing the Conversion, which is expected to take place on December 31, 2012, common shares of WesternOne Inc. will begin trading on the Toronto Stock Exchange under the symbol "WEQ". WesternOne Inc. is expected to pay a monthly dividend at the same level as the Fund's current monthly distribution of $0.05 per unit ($0.60 per unit annually) to allow for continued internally generated cash flow to support growth while providing sustainable monthly dividends to shareholders. The amount of any dividends payable by WesternOne Inc. from time to time will be at the sole discretion of its board of directors, and, consistent with the Fund's past practice, the level of dividends will be evaluated periodically based on a number of factors, including financial performance, future prospects and capital requirements of the business.
Certain statements in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such information includes, without limitation, statements with respect to: management of WesternOne Inc., the level of dividends of WesternOne Inc., completion of the Conversion, tax treatment of Canadian resident unitholders arising from the Conversion and certain rights of holders of convertible debentures of the Fund arising as part of the Conversion. Actual events or results may differ materially.
Forward-looking information contained in this press release is based on certain key expectations and assumptions made by WesternOne, including, without limitation, expectations and assumptions respecting: the outlook of WesternOne's business and the economy in Western Canada and the U.S., the supply and demand for WesternOne's products and services, management's assessment of future plans and operations and WesternOne's ability to complete the Conversion by the expected effective date. Although the forward-looking information contained in this press release is based upon what the WesternOne's management believes to be reasonable assumptions, WesternOne cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in WesternOne's Annual Information Form dated March 29, 2012 and Management's Discussion and Analysis dated August 9, 2012, which are available on SEDAR (www.sedar.com).
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to WesternOne. The forward-looking information is made as of the date of this press release and WesternOne assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
WesternOne seeks to acquire and grow businesses in the construction and infrastructure services sectors in order to generate stable and growing distributions to its unitholders as well as to achieve overall capital appreciation.
Additional information relating to WesternOne, including WesternOne's Annual Information Form and other public filings, is available on SEDAR at www.sedar.com or on WesternOne's website at www.weq.ca.
Toronto Stock Exchange: WEQ.UN, WEQ.DB.B and WEQ.DB.C
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE: WesternOne Equity Income Fund
For further information:
Andrew Greig, Manager of Investor Relations
WesternOne Equity Income Fund
Suite 910, 925 West Georgia Street
Vancouver, BC V6C 3L2
Phone: (604) 678-4042