Toronto/Calgary: Strategic Energy Management Corp. (the “Manager”), the manager of Strategic Energy Fund (the “Fund”), announces that the Fund intends to purchase up to 2,138,395 of the units of the Fund (the “Units”) for cancellation by way of a normal course issuer bid through the facilities of the Toronto Stock Exchange (the “Exchange”). The 2,138,395 Units represent approximately 10% of the public float of the Fund. As of June 11, 2008, 24,839,719 Units are issued and outstanding. The public float of 21,383,949 Units has been calculated as the issued and outstanding Units, less Units held by insiders of the Fund.
The purchases may commence on June 16, 2008 and will terminate on June 15, 2009, or on such earlier date as the Fund may complete its purchase or provide notice of termination. Any such purchases will be made by the Fund at the prevailing market price at the time of such purchases in accordance with the requirements of the Exchange. Purchases of Units at less than NAV per Unit should have the effect of increasing the NAV per Unit.
The Fund will not purchase in any 30 day period more than 496,794 Units, representing 2% of the issued and outstanding Units as at the date of acceptance of the notice of the normal course issuer bid by the Exchange.
In the 12 months preceding the date of this release, the Fund has purchased for cancellation 2,697,102 Units pursuant to a mandatory buy-back program at an average price of $7.91 and 2,844,000 Units pursuant to a recently expired normal course issuer bid at an average price of $8.47.
To the knowledge of the Manager, no director, senior officer or other insider of the Manager intends at present to sell any Units under this bid. However, sales by such persons through the facilities of the Exchange or elsewhere may occur if the circumstances or decisions of any such person change. The benefits to any such person whose Units are purchased would be the same as the benefits available to all other holders whose Units are purchased.
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.
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. (“Sentry Select”), the investment advisor to the Fund, believes that capital appreciation can be realized.
Trading information and NAV: Strategic Energy Fund units trade on the Exchange under the symbol SEF.UN.
More information: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries)
Tel: 1-888-246-6656 Fax: 416 364-1197 email@example.com
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect the Manager’s and Sentry Select’s current expectations regarding future results or events. Although the Manager and Sentry Select believe that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager and Sentry Select 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.
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