Rights Offering-Strategic Energy Management Corp. is pleased to announce that Strategic Energy Fund (the “Fund”) has filed a final prospectus dated March 18, 2005, which qualifies the distribution of the rights (the “Rights”) and the units (the “Units”) issuable on the exercise of the Rights in each of the provinces and territories of Canada. The Fund will issue Rights to subscribe for Units to its Unitholders of record at the close of business (Toronto time) on April 1, 2005.
Rights and subscription price-Unitholders of record on April 1, 2005 will receive one Right for each Unit held. Three Rights will entitle the holder of the Rights to purchase one Unit at a price of $12.00 until 4:00 p.m. (Toronto time) on April 29, 2005.
Discount to Market Price-The subscription price of $12.00 represents a discount of 10.5 per cent to the closing price of $13.41 per Unit on March 17, 2005.
Additional Subscription Privilege-Holders of Rights who fully exercise their Rights are entitled to subscribe pro rata for additional Units, if available, that were not subscribed for initially.
Standby Commitment-John F. Driscoll, a principal Unitholder, has agreed to invest up to $3,000,000 to subscribe for all Units to which he is entitled under the Basic Subscription Right, and to purchase Units not otherwise subscribed for pursuant to the Basic Subscription Rights or the Additional Subscription Privilege.
Step Up Privilege-Holders of Rights not evenly divisible by three will be entitled to round up subscriptions to the next highest whole number.
Listing and trading-The Rights will commence trading on the Toronto Stock Exchange on April 1, 2005 and will be posted for trading on a “when issued” basis as of March 30, 2005 under the symbol SEF.RT. The TSX has conditionally approved the listing of the Units issuable upon the exercise of the Rights subject to the satisfaction of certain standard listing conditions.
Use of proceeds-The net proceeds of the Rights Offering will be invested by the Fund in accordance with the Investment Objectives, subject to the Investment Restrictions of the Fund.
Dealer Manager-First Associates Investments Inc. has been engaged as the Dealer Manager for the Rights Offering.
Strategic Energy Fund-Strategic Energy Fund is an investment trust that seeks to provide Unitholders with superior rates of return through a diversification strategy focused on investment opportunities within the Canadian energy sector. The Fund invests in established companies as well as early stage energy companies and to a lesser extent special energy issuers, each with prospects for high growth in the near to medium term and the potential for long term capital appreciation.The Fund’s investments in established companies, including energy royalty and income trusts, are made with a view of generating sufficient income to permit the Fund to make monthly cash distributions to Unitholders. These distributions are currently at a rate of $0.07 per unit monthly.Investments in early stage energy companies are focused on both private and public issuers with strong, experienced management teams, which have proven track records of enhancing shareholder value and successfully executing exit strategies. As well, the Fund may invest in undervalued issuers where Sentry Select Capital Corp., investment adviser to the Fund, believes that capital appreciation can be realized.
Sentry Select Capital Corp.-The Investment Adviser is Sentry Select Capital Corp. Sentry Select is a wealth management company with total assets under management of approximately $4.0 billion, including more than $1.2 billion in energy sector-related investments.More Information - Investor Services for broker/investor inquiries or Brian McOstrich for media inquiries. Tel: 1-888-246-6656 Fax: 416-364-1197 email@example.com www.sentryselect.com
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