Harvest Portfolios Group Inc.

Harvest Portfolios Group Inc.
Harvest Canadian Income & Growth Fund

April 29, 2010 15:03 ET

Harvest Canadian Income & Growth Fund Files Preliminary Prospectus

TORONTO, ONTARIO--(Marketwire - April 29, 2010) - Harvest Portfolios Group Inc. (the "Manager") is pleased to announce that a preliminary prospectus for the Harvest Canadian Income & Growth Fund (the "Fund") has been filed with, and a receipt therefore issued by, the securities regulatory authorities in each of the provinces and territories of Canada.

The Fund proposes to issue units (the "Units") of the Fund (the "Offering") at a price of $12.00 per Unit. Each Unit consists of one transferable trust unit ("Trust Unit") and one Trust Unit purchase warrant ("Warrant"). The Units will separate into Trust Units and Warrants upon the earlier of the closing of the Over-Allotment Option and the 30th day following the closing of the Offering. Each Warrant entitles the holder to purchase one Trust Unit at the subscription price of $12.00 per Trust Unit before 5:00 p.m. (Toronto time) on November 30, 2011.

The Fund's investment objectives are:

(i) to provide holders of Units ("Unitholders") with monthly distributions (initially targeted to be $0.07 per Trust Unit ($0.84 per annum) representing an annual cash distribution of 7.0% based on the $12.00 per Unit issue price); and

(ii) to maximize long-term total return for Unitholders while reducing volatility.

The net proceeds of the Offering will be invested in an actively managed portfolio comprised primarily of dividend-paying securities and income trust units of publicly-traded utilities, industrial, communications, real estate and retail issuers domiciled in Canada.

Avenue Investment Management Inc. (the "Investment Manager") will be responsible for the execution of the Fund's overall investment strategy, including managing the composition of the portfolio of the Fund.

The syndicate of agents is being co-led by BMO Nesbitt Burns Inc., CIBC World Markets Inc. and RBC Capital Markets and includes Scotia Capital Inc., HSBC Securities (Canada) Inc., Dundee Securities Corporation, Raymond James Ltd., Canaccord Financial Ltd., Macquarie Capital Markets (Canada) Ltd., Wellington West Capital Markets Inc., Desjardins Securities Inc. and Industrial Alliance Securities Inc. (collectively, the "Agents").

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund, the Manager and/or the Investment Manager. The forward-looking statements are not historical facts but reflect the Fund's, the Manager and/or Investment Manager's 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 Fund, the Manager and/or the Investment Manager 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 Fund, the Manager and/or the Investment Manager 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.

A preliminary prospectus dated April 27, 2010 (the "Prospectus") containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The Prospectus is still subject to completion or amendment. Copies of the Prospectus may be obtained from any of the Agents. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

All capitalized terms noted herein but not defined are as defined in the Prospectus.

For additional information or a copy of the Prospectus, please contact your registered financial advisor.

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