Amalgamated Income Limited Partnership

Amalgamated Income Limited Partnership

February 03, 2006 12:21 ET

Amalgamated Income Limited Partnership Announces Cash Offer for Infinity Income Trust

CALGARY, ALBERTA--(CCNMatthews - Feb. 3, 2006) - Amalgamated Income Limited Partnership (TSX:AI.UN) ("Amalgamated LP") announced that it has mailed an all cash offer (the "Offer") to purchase all the outstanding trust units ("Units") of Infinity Income Trust ("Infinity Trust") for a price of $0.35 per Unit. The Offer is dated February 2, 2006, and will be open for acceptance until March 9, 2006, unless extended or withdrawn.

Infinity Trust was formed for the purpose of financing the sales commissions related to the distribution of units of certain mutual funds (which were merged or renamed as Dynamic Mutual Funds), sold on a deferred sales charge basis during the period from August 1, 1997 to February 26, 1998. In return, Infinity Trust acquired interest bearing instruments, from which it provides quarterly distributions to its Unitholders ("Unitholders").

This Offer is one of the methods that Amalgamated LP utilizes in conducting its business, which involves: (i) the investing in and acquiring, directly or indirectly income generating securities, assets or businesses; and (ii) the holding, management, reorganization and disposition of such securities, assets or businesses, with a view to making a profit. The completion of the Offer will result in, among other things, the integration of Amalgamated LP's investment portfolio with that of Infinity Trust, and will be accretive to the net asset value and distributable cash flow of Amalgamated LP. Amalgamated LP currently owns, directly or indirectly, 260,367 Units of Infinity Trust or approximately 17.2% of the outstanding Units.

Amalgamated LP will fund the Offer from cash on hand. There is no minimum condition under the Offer. The obligation of Amalgamated LP to take up and pay for Units pursuant to the Offer is subject to certain conditions, including the determination by Amalgamated LP that neither Infinity Trust has taken or proposed to take any action that might make it inadvisable for Amalgamated LP to proceed with the Offer and/or taking up and paying for deposited Units. There is no condition for a minimum number of Units to be deposited and not withdrawn under the Offer.

In connection with the Offer, Amalgamated LP has mailed, and filed on SEDAR (at, a take-over bid circular that contains important information. Unitholders of Infinity Trust should read the circular and any other materials included with such mailing relating to the Offer.

Amalgamated LP specializes in buying, holding and where appropriate selling securities with a view to profit. Amalgamated LP's main focus remains on buying mutual fund limited partnerships. Amalgamated LP units are listed on the Toronto Stock Exchange (AI.UN) and are RRSP eligible.

Contact Information

  • Amalgamated Income Limited Partnership
    Elias Foscolos
    (403) 265-6540 or Toll free in Canada 1-877-202-4717
    Amalgamated Income Limited Partnership
    Bruce Warkentin
    Chief Financial Officer
    (403) 265-6540 or Toll free in Canada 1-877-202-4717
    (403) 206-7185 (FAX)