GENIVAR Income Fund

GENIVAR Income Fund

May 25, 2006 09:44 ET

GENIVAR Income Fund Completes Initial Public Offering

MONTREAL, QUEBEC--(CCNMatthews - May 25, 2006) -


GENIVAR Income Fund (the "Fund") (TSX:GNV.UN) is pleased to announce that it has completed its initial public offering of 10,000,000 units at a price of $10.00 per unit for total gross proceeds of $100,000,000. The Fund also granted to the underwriters of the offering an over-allotment option, exercisable at any time prior to but no later than 30 days following the closing of the offering, to acquire an additional 1,000,000 units on the same terms and conditions.

The proceeds of the offering were used by the Fund to indirectly acquire a 52.8% limited partnership interest in the engineering services business previously owned and operated by GENIVAR Inc., which included the business of MacViro Holdings Inc. ("MacViro"). The balance, representing an interest of 47.2%, was retained by GENIVAR Inc.

The offering was made through an underwriting syndicate co-led by National Bank Financial Inc. and TD Securities Inc., and also included BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Raymond James Ltd. and Canaccord Capital Corporation.

The Fund's units have commenced trading on the Toronto Stock Exchange under the symbol GNV.UN.

The initial monthly cash distribution of the Fund for the period from closing to and including June 30, 2006 is estimated to be $0.1022 per unit and is expected to be paid on or about July 17, 2006 to holders of record on June 30, 2006. Subsequent distributions in the estimated amount of $0.0833 per unit are anticipated to be paid each month thereafter commencing August 15, 2006.

GENIVAR is a leading Canadian engineering services firm providing private and public sector clients with a full range of professional consulting services through all execution phases of a project including planning, design, construction and maintenance. Its clients, which are of varying sizes, fall into various market segments such as building, industrial and power, urban infrastructure, transportation and environment. With the acquisition of MacViro, GENIVAR is one of the largest engineering services firm in Canada in terms of number of employees with approximately 1,300 managers, professionals, technicians and technologists and support staff in 31 offices in Canada and two offices in Trinidad and Tobago.

The units have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of such Act. Accordingly, this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction.

Contact Information

    Marlene Casciaro
    Director of Communications
    (514) 340-0046, ext. 184