EnerVest Diversified Income Trust
TSX : EIT.UN
April 20, 2009 20:18 ET
EnerVest Announces Unit Consolidation and April Distribution
CALGARY, ALBERTA--(Marketwire - April 20, 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 will implement a consolidation of the Fund's units on the basis of three (3) pre-consolidation units for one (1) post-consolidation unit. The EnerVest Value Enhancement Plan, which provides the Manager the flexibility to split or consolidate units of the Fund, was approved by Unitholders at the Special Meeting held on March 26, 2009.
Unitholders' net interest in the Fund will not be impacted by the unit consolidation. The April monthly distribution will be adjusted to $0.15 per unit which reflects the 3 for 1 consolidation and a pre-consolidation distribution of $0.05 per unit. The record date for this distribution is April 30, 2009 and the payment date will be May 15, 2009. Subject to prior approval by the Toronto Stock Exchange ("TSX"), the earliest that the units will begin trading on a post consolidation basis on the TSX will be April 24, 2009.
Jacob Roorda, President and CEO of EnerVest stated, "The unit trading price is fundamentally supported by the underlying net asset value of the portfolio, which we report daily. One of our commitments in the Value Enhancement Plan is to provide Unitholders with additional flexibility. By increasing the market price for EnerVest units, the unit consolidation will provide investors with increased flexibility by enabling them to purchase or hold units purchased on margin."
No fractional units will be issued in connection with the consolidation. Unitholders who hold their EnerVest units through a broker are not required to take any action with respect to the consolidation.
In the event that a registered Unitholder would otherwise be entitled to a fractional unit, the number of units issued to that Unitholder will be rounded up to the next greater whole number of units if the fractional amount is 0.5 or greater. If the fractional amount is less than 0.5, the units issued will be rounded down to the next lesser whole number of units, without any additional compensation.
A Letter of Transmittal will be mailed to each registered Unitholder on or about April 21, 2009. The Letter of Transmittal will include instructions on how to exchange pre-consolidation unit certificates. As a consequence of the consolidation the Fund's CUSIP number will be changed to 292963204.
About the Distribution
The monthly distribution is comprised of income and capital gains from the investment portfolio. Although the Fund is actively managed and reviewed on a regular basis, it is important to note that external influences, such as market volatility and commodity prices, have a direct effect on the income of the Fund. Management will continue to regularly monitor its portfolio returns, making adjustments to the underlying securities and distributions as required, to ensure the long-term flexibility and sustainability of the Fund.
About the Fund
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 current expectations of EnerVest Management Ltd.'s (the "Administrator") and its affiliates 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.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.