AG Growth Income Fund

AG Growth Income Fund

March 21, 2006 16:05 ET

Ag Growth Income Fund Announces Monthly and Quarterly Distributions

WINNIPEG, MANITOBA--(CCNMatthews - March 21, 2006) - Ag Growth Income Fund (TSX:AFN.UN) (Ag Growth), announced today a cash distribution of $0.14 per trust unit of Ag Growth and per Class B exchangeable limited partnership unit of AGX Holdings Limited Partnership for the period commencing March 1, 2006 and ending March 31, 2006. Furthermore, Ag Growth announced a distribution of $0.42 per Class C subordinated limited partnership unit of AGX Holdings Limited Partnership for the period January 1, 2006 to March 31, 2006. The Class C distribution, which per the terms outlined in the Fund's prospectus are paid quarterly, is comprised of a per unit amount of $0.14 for the months of January, February, and March. The distributions are payable on April 28, 2006 to holders of trust units of Ag Growth and holders of Class B exchangeable and Class C subordinated limited partnership units of AGX Holdings Limited Partnership of record on March 31, 2006.

Distribution Policy

Ag Growth's policy is to pay cash distributions on or about the 30th of each month to unitholders of record on the last business day of the preceding month. Unitholders who are non-residents of Canada will be required to pay all withholding taxes payable on any distributions by Ag Growth. The Fund's policy is to make monthly distributions to holders of both Fund units and Class B Exchangeable limited partnership units. Furthermore, in accordance with the terms of the Fund's prospectus, holders of Class C Subordinated Exchangeable limited partnership units receive distributions quarterly provided the relevant terms of subordination have been met, which they have since the inception of the Fund.

The Fund's Board of Trustees reviews financial performance and other factors when assessing the Fund's distribution levels. An adjustment to distribution levels will be made at such time as the Board determines the adjustment is sustainable and in the long-term best interest of the Fund and its unitholders. The Fund's Declaration of Trust requires that it distribute all taxable income earned in its fiscal period ending December 31. It may be necessary for the Fund to estimate one or more special distributions to achieve this requirement.

About Ag Growth Income Fund

Ag Growth is a leading manufacturer of portable grain handling equipment including augers, belt conveyors and numerous other grain handling accessories. Ag Growth has a leading North American sales, marketing and distribution system within the short-line farm equipment industry, including approximately 1,400 dealers and distributors, in 48 states and nine provinces.

Forward-Looking Statements

The statements contained in this news release that are forward-looking are based on current expectations, and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, the dependence of Ag Growth Income Fund on the operations and assets currently owned by Ag Growth Industries Limited Partnership, the degree to which Ag Growth Industries Limited Partnership and its affiliates are leveraged, the fact that cash distributions are not guaranteed and will fluctuate with Ag Growth Industries Limited Partnership's financial performance, dilution, restrictions on potential future growth, the risk of unitholder liability, competitive pressures (including price competition), changes in market activity, the cyclicality of the farm equipment industry, seasonality of the business, poor weather conditions, international operations and foreign currency fluctuations, legal proceedings, commodity price and raw material exposure, dependence on key personnel, and environmental, health and safety and other regulatory requirements. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Ag Growth Income Fund with the securities regulatory authorities, available at

Contact Information

  • Ag Growth Income Fund
    Steve Sommerfeld
    Investor Relations
    (204) 489-1855