TORONTO: CAPVEST Income Corp. (the “Corporation”) is pleased to announce that the rights offering, which expired on August 1, 2006, closed today, raising aggregate gross proceeds of $6,860,921.
Rights offering results: The results of the rights offering are as follows:
|Number of shares initially subscribed for||Number of shares issued under additional subscription privilege||Total number of shares issued||Total gross proceeds|
The rights offering was oversubscribed by 3,390,176 shares.
Use of proceeds: The net proceeds of the rights offering will be invested by the Corporation in accordance with its investment objectives, subject to the investment restrictions of the Corporation.
Dealer manager: Blackmont Capital Inc. was engaged as the dealer manager (the “Dealer Manager”) for the Rights Offering. The Corporation has paid the Dealer Manager a fee of $50,000 and $0.001 per common share issued under the Rights Offering. The Corporation will pay a subscription fee of $0.005 for each common share issued under the Rights Offering to members of the soliciting dealer group (including the Dealer Manager).
Investment objectives: The investment objective of CAPVEST Income Corp. is to generate capital appreciation and, to a lesser extent, income, through exposure to commodity-related investments, including commodity-related income trusts and the Rogers International Commodity Index (RICI).
Net asset value and trading price: As of August 3, 2006, the Corporation’s net asset value was $0.24 per share and the closing price on the TSX Venture Exchange was $0.16 per share, representing a 33 per cent discount to the net asset value.
Trading information: CAPVEST Income Corp. common shares and convertible debentures trade on the TSX Venture Exchange under the symbols CVS and CVS.DB respectively.
Debentures: CAPVEST Income Corp. unsecured convertible debentures have an interest coupon of 7% per annum, payable quarterly, with a maturity date of December 31, 2008. On August 8, 2006, the closing price on TSX Venture Exchange was $99.00 per debenture.
Sentry Select Capital Corp.: Sentry Select Capital Corp. provides investment, administrative and marketing services to 32 exchange-listed closed-end funds and corporations, including preferred securities and debentures, 16 mutual funds, 15 principal-protected notes and three flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of June 30, 2006, the firm had over $8.0 billion in gross assets under management.
More information: Investor Services (broker/investor inquiries), Kinga Lam (media inquiries) or Kevin Cohen (Corporate Secretary) Tel: 1-888-246-6656 Fax: 416 364-1197 firstname.lastname@example.org www.sentryselect.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (www.sedar.com).