Spinrite Income Fund

Spinrite Income Fund

May 29, 2006 09:53 ET

Spinrite Income Fund Terminates Unitholder Rights Plan

LISTOWEL, ONTARIO--(CCNMatthews - May 29, 2006) - Spinrite Income Fund (TSX:SNF.UN) (the "Fund") announced today the termination of its Unitholder Rights Plan (the "Rights Plan"). The Rights Plan became effective upon entering into the Unitholder Rights Plan Agreement dated February 17, 2006, as amended on April 25, 2006, subject to unitholder approval. Approval of the Rights Plan required a majority of the votes cast at the Annual and Special Meeting of the Fund's unitholders held on May 23, 2006. Management received enough proxies voting against the Rights Plan to believe the Rights Plan would not be approved. As the Fund did not wish to act in a manner not supported by its unitholders, the board of trustees of the Fund withdrew the resolution to approve the Rights Plan. The Fund will redeem the rights issued pursuant to the Rights Plan at the redemption price of $0.00001 per right. No payments will be made to holders entitled to receive less than $10.00 in respect of all of the rights held by such holder.

Spinrite Income Fund (TSX:SNF.UN) is the largest producer and marketer of craft yarn in Canada and one of the largest in the United States. Established in 1952, Spinrite researches, develops, manufactures and markets a broad variety of consumer craft yarns. The company also supports its market with patterns that provide customers with creative ideas for knitted products. Spinrite has approximately 520 employees at its fully integrated manufacturing and distribution centre in Listowel, Ontario.

Contact Information

  • Spinrite Income Fund
    Ryan Newell
    Chief Financial Officer
    (519) 291-3780, ext. 278
    (519) 291-3232 (FAX)