TORONTO: The Board of Directors of Sentry Select Capital Corp. (“Sentry Select” or the “Manager”) announces that it is proposing a merger of Select 50 S-1 Income Trust II (“Terminating Fund”) with Select 50 S-1 Income Trust (“Continuing Fund) (the “Merger”).
If approved, the Terminating Fund will transfer all of its assets to the Continuing Fund in exchange for units of the Continuing Fund and the assumption by the Continuing Fund of all the liabilities of the Terminating Fund. Each unitholder of the Terminating Fund will receive units of the Continuing Fund having the same aggregate net asset value as their units of the Terminating Fund as of the close of business on the effective date of the Merger, expected to be July 4, 2008.
The Merger: The Manager believes that the Merger will result in significant benefits to unitholders of the Terminating Fund for the following reasons:
Costs of the Merger: All costs and expenses associated with the Merger will be borne by the Manager.
Unitholder approval: The Merger will require approval of two-thirds of the votes cast by unitholders of the Terminating Fund at a special meeting of the unitholders to be held on June 23, 2008. The record date for the purpose of determining the unitholders entitled to receive notice and vote at the meetings was the close of business on May 20, 2008.
The proposed Merger is subject to the acceptance and approval by the Toronto Stock Exchange.
Net asset values: As of May 26, 2008, the net asset value of the Terminating Fund was $59,470,704 and the net asset value of the Continuing Fund was $190,598,810.
Sentry Select Capital Corp.: Sentry Select Capital Corp. is a Canadian wealth management company that manages over $6.5 billion in gross assets as of March 31, 2008. The company offers a diverse range of investment products including closed-end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates.
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Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions ‘‘expect’’, ‘‘intend’’, “will” and similar expressions to the extent they relate to Sentry Select. The forward-looking statements are not historical facts but reflect Sentry Select’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Sentry Select believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Sentry Select undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
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