Toronto/Calgary: Strategic Energy Management Corp., the manager of Strategic Energy Fund (the “Fund”), is pleased to announce that the Fund filed a final short form prospectus in connection with an offering of warranted units of securities (the “Warranted Units”) of the Fund (the “Offering”). Each Warranted Unit consists of one trust unit of the Fund and one-half of one Fund unit purchase warrant, which will be separated upon the closing of the Offering. The Offering will consist of up to 7,751,938 Warranted Units to raise gross proceeds of up to $100,000,000.
Offering price: The offering price per Warranted Unit is $12.90.
Each whole warrant will entitle the holder thereof to purchase one Fund Unit at a price of $12.90 at any time on or before October 31, 2007.
Trading information and NAV: As of October 27, 2006, the Fund’s closing price on the TSX was $11.99 per unit and the net asset value was $12.93 per unit.
Use of proceeds: The net proceeds of the Offering will be invested by the Fund in accordance with its investment objectives, subject to the investment restrictions of the Fund.
Agent’s fees: The Fund has agreed to pay the Agents an aggregate fee equal to 5% of the Offering Price of each Warranted Unit sold pursuant to the Offering. The Manager has agreed to reimburse the Fund for expenses of the Offering equal to 3% of the Offering Price of each Warranted Unit sold pursuant to the Offering in 16 equal quarterly instalments, together with interest, beginning on January 1, 2008.
Commitment of Principal Unitholder: John F. Driscoll intends to participate, directly or indirectly, in the Offering by purchasing up to 5% of the number of Warranted Units sold pursuant to the Offering, to a maximum of $5,000,000.
Agents: A syndicate of agents led by CIBC World Markets Inc. includes National Bank Financial Inc., TD Securities Inc., Blackmont Capital Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Research Capital Corporation, Berkshire Securities Inc., Desjardins Securities Inc., IPC Securities Corporation, Jory Capital Inc. and Wellington West Capital Inc.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, 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 to generate sufficient income to permit the Fund to make monthly cash distributions to unitholders. The Fund expects to continue to pay monthly distributions of $0.11 per unit during the remainder of 2006. However, if the make-up of the portfolio changes or if such portfolio holdings make distributions other than in accordance with their indicated guidance, distributions may differ.
Investments in early-stage energy companies are focused on both private and public issuers with strong, experienced management teams that 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 advisor to the Fund, believes that capital appreciation can be realized.
Sentry Select Capital Corp.: The investment advisor of the Fund is Sentry Select Capital Corp., a wealth management company providing investment, administrative and marketing services to 33 exchange-listed closed-end funds and corporations, including preferred securities and debentures, 17 principal-protected notes, 16 mutual funds and four flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of September 30, 2006, the firm had approximately $8.5 billion in gross assets under management.
More information: Investor Services (broker/investor inquiries), Kinga Lam (media inquiries)Tel: 1-888-246-6656 Fax: 416 364-1197 firstname.lastname@example.org www.sentryselect.com
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