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.
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