Carlton Trail Limited Partnership

May 29, 2006 17:00 ET

Carlton Trail Limited Partnership Announces $1,000,000 Financing

CALGARY, ALBERTA--(CCNMatthews - May 29, 2006) - Carlton Trail Properties Ltd., (the "General Partner"), the General Partner of Carlton Trail Limited Partnership (the "Partnership") (TSX VENTURE:CTP.UN.A) is pleased to announce that the Partnership intends to complete a private placement financing of 100,000 Class C Preferred Units ("Units") of the Partnership at a price of $10.00 per Unit for proceeds of $1,000,000 to the Partnership and to make an application for listing of the Units on the TSX Venture Exchange immediately following expiration of the applicable 4 month hold period.

The Partnership intends to utilize the proceeds from the private placement to complete a real estate acquisition transaction.

The private placement is subject to regulatory approval and the Partnership is required to file a formal application with the TSX Venture Exchange. The Partnership expects closing to take place on or about July 15, 2006.

The Partnership also announces that the board of directors of the General Partner and the Unitholders of the Partnership have approved recent amendments to the limited partnership agreement to: (i) grant holders of Class C Preferred Units the right to vote at meetings of Unitholders; (ii) remove the rights of holders of Class C Preferred Units to retract their Class C Preferred Units; (iii) change the distribution entitlement of Class Preferred Units from 11% of the acquisition price of each Class C Preferred Unit to 7% and remove restrictions relating to the redemption of Class C Preferred Units; (iv) change the priority rights to distribution entitlements, distributions and distribution of assets or return of capital in the event of liquidation, dissolution or winding-up of the Partnership such that holders of Class B Preferred Units have priority over holders of Class C Preferred Units; and (v) change the governing jurisdiction from Manitoba to Alberta.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Carlton Trail Properties Ltd.
    Henry Bustard
    (403) 250-6688
    Carlton Trail Properties Ltd.
    #1 1715-27th Ave NE
    Calgary, Alberta T2E 7E1