Blue Ribbon Fund Management Ltd.

Blue Ribbon Fund Management Ltd.
Citadel Diversified Investment Trust
TSX : CTD.UN

Citadel Diversified Investment Trust
Citadel S-1 Income Trust Fund
TSX : SDL.UN

Citadel S-1 Income Trust Fund
Citadel HYTES Fund
TSX : CHF.UN

Citadel HYTES Fund
Series S-1 Income Fund
TSX : SRC.UN

Series S-1 Income Fund
Citadel Premium Income Fund
TSX : CPF.UN

Citadel Premium Income Fund

September 23, 2009 16:29 ET

Blue Ribbon Announces Terms of Warrants

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2009) - Blue Ribbon Fund Management ("Blue Ribbon") is pleased to announce that if the Blue Ribbon proposal is approved by unitholders, there will be a warrant offering following the merger of certain Citadel funds to form the Blue Ribbon High Income Fund. Each unitholder of the Blue Ribbon High Income Fund will receive one warrant for each two units held on the record date. The record date will be set on the filing of the warrant prospectus, which is expected to be shortly after completion of the mergers. The warrants will be priced at the most recently published NAV per unit prior to the date of filing the warrant prospectus plus the per unit fees and expenses of the offering. A selling concession equal to approximately 1.5% of the exercise price will be paid to investment dealers for each warrant exercised. Blue Ribbon will apply to have the warrants listed on the Toronto Stock Exchange ("TSX") and the warrants will be exercisable from issue date to expiry date, which is expected to be September 15, 2010. The warrant offering will be completed in accordance with all applicable requirements of Canadian securities law.

Blue Ribbon recommends that the Right Way Forward for Citadel Funds is that unitholders vote their blue proxy / voting instruction forms both AGAINST the Reorganization Resolution and FOR the Hostile Resolution (Blue Ribbon Proposal) for the upcoming meeting of unitholders to be held on September 30, 2009.

Investors are urged to visit our website at www.therightwayforward.com for further information on the Blue Ribbon proposal. To review the Blue Ribbon Proxy Circular, please visit our website or www.sedar.com. Unitholders are encouraged to vote their proxy as soon as possible.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Funds, to the future outlook of the Funds and anticipated events regarding the future financial performance of the Funds. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information for a variety of reasons, including those set forth below.

Forward-looking statements in this press release include among other things, the proposed timing of the warrant offering. These statements are based on certain factors and assumptions. In arriving at our conclusions regarding the proposed timing of the warrant offering, we have assumed that unitholder approval will be obtained at the Citadel meetings, and that any regulatory approvals and third party consents and actions are given or carried out (as the case may be) in a timely manner.

Contact Information

  • If you require information on
    how to change a previously cast vote,
    please contact the following people:

    or

    Mark Caranci
    416-642-6004

    or

    David Roode
    416-642-6008

    or

    Lorne Zeiler
    416-642-9058

    or

    Chris Cullen
    416-642-9064

    or

    Toll-free: 1-866-642-6001
    info@bromptongroup.com