EnerVest Diversified Income Trust Announces Warrant Offering
CALGARY, ALBERTA--(Marketwire - Nov. 23, 2009) - NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.
EnerVest Diversified Income Trust ("EnerVest" or "the Fund") (TSX:EIT.UN) is pleased to announce that it has filed its preliminary prospectus, for an offering of Warrants (the "Offering") to unitholders of the Fund. Subject to the Fund obtaining all necessary regulatory and TSX approvals, unitholders will receive Warrants on the basis of one-quarter of a Warrant for each whole unit held on the record date, which will be determined upon the filing of the final prospectus.
Jacob Roorda, President and CEO stated, "We are pleased to provide this offer exclusively to our unitholders. All unitholders will have the opportunity to exercise their Warrants to acquire additional units at a pre-determined price, potentially lower than the market price of the units. Proceeds raised from this offering will provide additional investment flexibility, allow the Fund to take advantage of market opportunities and should reduce the ongoing management expense ratio, for the benefit of all unitholders."
Each whole Warrant will entitle the holder to subscribe for one unit upon payment of the subscription price which will be the lesser of (i) $13.36, which is 95% of the most recently calculated NAV per unit prior to the date of the preliminary prospectus and (ii) 95% of the most recently calculated NAV per unit prior to the date of filing the final prospectus. Subject to more specific terms outlined in the prospectus, the Warrants will be exercisable for nine months following their date of issue, subject to a call right exercisable by the Fund should the exercise price exceed the unit price.
The Trust has applied to list the Warrants distributed under this prospectus, and the units issuable upon the exercise thereof, on the TSX. Once the Warrants begin trading, investors will have the opportunity to buy or sell the Warrants, which will trade independently of the existing EnerVest units.
The Warrants are not qualified for distribution in the United States of America. For further details please consult the prospectus and your investment advisor. A copy of the preliminary prospectus has been filed on SEDAR at www.sedar.com. Full details about this Warrant Offering will be available on our website at www.enervest.com or you can contact us at 1-877-434-2796.
Conference Call and Webcast – Tuesday, November 24, 2009
EnerVest management along with Cypress Capital Management Ltd., the Portfolio Manager of the Fund, will be providing investors with an update on the EnerVest portfolio, the Fund's performance and the Fund's preparation towards the new tax regime for income trusts in 2011. Details of the call are as follows:
Date: Tuesday, November 24, 2009
Time: 9:00 am MST (11:00 pm EST)
Call in number: 1-866-225-0198 or 1-416-340-8061
Webcast: A link to the webcast will be available at www.enervest.com
An archived recording of the call will be available from approximately one hour after the call until midnight December 1, 2009 by dialing 1-800-408-3053 or 1-416-695-5800 and entering the replay access code 3057058 followed by the pound (#) sign.
The Fund is Canada's largest, most liquid, diversified closed-end investment fund. The Fund is listed on the TSX under the symbol EIT.UN and is an actively managed, diversified portfolio of income-generating and capital growth oriented securities, listed primarily on the TSX, designed to maximize distributions and Net Asset Value for the benefit of its unitholders.
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect EnerVest Management Ltd.'s and its affiliates (the "Administrator") current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Administrator believes 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 Administrator undertakes 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.