TORONTO: C.A. Bancorp Inc. (“C.A. Bancorp” or the “Manager”) as manager of the Sentry Select Total Strategy Fund (“Total Strategy” or the “Fund”) announces a special distribution of C$7.00 per Fund unit (“Unit”).
The Manager also announces that it is proceeding with steps to prepare for the previously announced termination of the Fund in August 2008, or such later date as may be determined by the Manager in accordance with the terms of the Fund’s trust agreement.
Distribution Details; The special distribution will be paid on August 15, 2008 to unitholders of record at the close of business on July 31, 2008. The details of the special distribution are set out below:
C$7.00 per unit
July 29, 2008
July 31, 2008
August 15, 2008
Tax Treatment: The Manager is reviewing the tax characterization of the distribution, but the distribution is expected to be treated as an approximately 83% return of capital and 17% capital gain for tax reporting purposes. Unitholders are encouraged to consult their own tax advisors regarding the tax treatment of the special distribution.
Purchasing of Fund Units: Only unitholders of record on July 31, 2008 will be eligible to receive the special distribution. As of the ex-distribution date, the net asset value (NAV) of the Fund will decrease by $7.00 per Unit. As such, investors are reminded that any purchases of Units made on or following the ex-distribution date will need to take into account the drop of the NAV post-distribution.
Update on Termination Activities: As previously announced, the Manager has instructed Sentry Select Capital Corp., as investment manager (“Investment Manager”), to sell and convert to cash, to the extent possible and in an orderly manner, the property of the Fund in an attempt to complete the conversion to cash by the Termination Date of the Fund, set at August 21, 2008, subject to extension. The Fund has substantially completed the liquidation of its public portfolio. C.A. Bancorp has made an offer to purchase the private investments held by the Fund. The Investment Manager has retained an independent valuator to prepare a fairness opinion in respect of the offer.
Final Distribution of the Fund’s net assets to unitholders: The Fund intends to issue a final distribution immediately prior to winding-up the Fund in an amount equal to the remaining net assets in the Fund. The actual amount and timing of this final distribution will depend upon the Fund’s ability to liquidate its remaining assets including the private portfolio investments currently totaling approximately $3,450,000 in carrying value.
Trading Information and Discount to NAV: The Fund’s units trade on the TSX under the symbol: TSF.UN. The Fund’s units closed at a market price of $9.40 per unit on July 17, 2008 which represents an 8.1% discount to the most recently reported net asset value per unit of $10.23 as of July 17, 2008.
C.A. Bancorp Inc.: C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.
More information: Paolo De Luca, Chief Financial Officer, C.A. Bancorp Inc.Tel: 1-866-388-5985 Fax: 416-861-8166 firstname.lastname@example.org
Certain statements included in this news release constitute forward looking statements, including those identified by the expressions ‘‘expect’’, ‘‘believe’’, ‘‘intend’’, “will” and similar expressions. The forward looking statements are not historical facts but reflect C.A. Bancorp and Total Strategy’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 including, but not limited to, the timing of the liquidation of the Fund’s assets, the timing and amount of any distribution, the timing and results of the fairness opinion. Readers are cautioned not to place undue reliance on forward-looking information. C.A. Bancorp and Total Strategy undertake 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.
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).