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 24, 2009 09:12 ET

Proposed IRC Confirms Approvals for Blue Ribbon Proposal

TORONTO, ONTARIO--(Marketwire - Sept. 24, 2009) - Blue Ribbon Fund Management, the sponsor of the so-called "Hostile Proposal" relating to Citadel Diversified Investment Trust (TSX:CTD.UN), Citadel S-1 Income Trust Fund (TSX:SDL.UN), Citadel HYTES Fund (TSX:CHF.UN), Series S-1 Income Fund (TSX:SRC.UN), and Citadel Premium Income Fund (TSX:CPF.UN), (collectively, the "Citadel Funds") wishes to clarify that the individuals to be appointed to the Blue Ribbon IRC if the Blue Ribbon Proposal is successful have reviewed the entire Blue Ribbon Proposal, including the appointment of Bloom as investment manager for the continuing fund and the mergers. These individuals have concluded that, in the event that the Blue Ribbon Proposal is approved by Citadel Fund unitholders, the terms of the Blue Ribbon Proposal (as disclosed in the Blue Ribbon Circular) would achieve a fair and reasonable result for the unitholders of the Citadel Funds. Once the Blue Ribbon Proposal has been approved, and the IRC formally appointed, the IRC will ratify its recommendation of the Blue Ribbon Proposal in an immediate press release to unitholders.

Blue Ribbon also wishes to clarify that, with respect to the mergers which form a part of the Blue Ribbon proposal, Staff of the Ontario Securities Commission has advised Blue Ribbon that it believes that relief will be required under National Instrument 81-107 as a result of the sequencing of the approvals by Citadel Fund unitholders and the IRC. As previously disclosed, under National Instrument 81-107, the approval of an investment fund manager's IRC is usually sought before unitholder approval but, in this case, if the Blue Ribbon Proposal is successful, Citadel Fund unitholders and the proposed IRC will have actually approved all aspects of the Blue Ribbon Proposal, including the mergers, before Blue Ribbon is appointed as manager and before the IRC is appointed. Blue Ribbon will duly seek this relief following its appointment as manager.

Unitholders are urged to deliver their voting instructions by internet, telephone, mail or facsimile so that they are received by the close of business on Friday, September 25. Unitholders should therefore vote their proxies as soon as possible.

Unitholders are reminded that the Blue Ribbon proposal has been recommended by:

- 5 major investment dealers;

- Noted financial author Gordon Pape; and

- RiskMetrics Group, the premier institutional proxy advisor.

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

Contact Information

  • 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
    Email: info@bromptongroup.com