TORONTO: CAPVEST Income Corp. (the “Company”) is pleased to announce its results for the year ended December 31, 2006.
• In August 2006, the Company closed a rights offering that raised total gross proceeds of $6,860,921 through the issuance of 45,739,475 units.
• The Company’s net assets increased to $12,050,422 at December 31, 2006 ($9,857,227 at December 31, 2005). The largest factor contributing to the increase in net assets was the rights offering.
• For the year, the Company had a decrease in net assets from operations of $4,084,331 (2005 – an increase of $912,123). The Company’s negative performance was driven by the decline in the income and royalty trust sector caused largely by the October 31, 2006 federal government’s announcement to impose distribution tax on income trusts.
• At a special meeting held on March 6, 2007, the shareholders of the Company approved a change to the Company’s investment objectives, to now focus on investing, directly or indirectly, in a diversified group of infrastructure and energy companies. The Company intends to target an annual yield of approximately 6%, paid quarterly on the comon shares.
• The shareholders and the Board of Directors of the Company also approved the consolidation of the Company’s common shares at a ratio of 15 to 1.
• The Company’s net asset value (NAV) per common share was $0.13 as of December 31, 2006 (December 31, 2005 - $0.22 per share).
2006 financial results: For the complete 2006 Annual Management Report of Fund Performance and Annual Financial Statements, please visit www.sentryselect.com or www.SEDAR.com.
CAPVEST Income Corp.: The investment objective of CAPVEST Income Corp. is to generate income and capital appreciation through investing, directly or indirectly, in a diversified group of infrastructure and energy companies. Its common shares and 7% convertible debentures trade under the symbols CVS and CVS.DB, respectively.
Sentry Select Capital Corp.: Sentry Select Capital Corp., the Manager of the Fund, is one of the fastest-growing wealth management companies in Canada and manages over $8 billion in gross assets. 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. With 35 reporting entities, Sentry Select is the leading issuer of securities listed on the Toronto Stock Exchange.
More information: Investor Services (broker/investor inquiries), Kinga Lam (media inquiries) or Richard D’Archivio (Vice-President, Finance) Tel: 1-888-246-6656 Fax: 416-364-1197 email@example.com www.sentryselect.com
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