Avenir Diversified Income Trust

Avenir Diversified Income Trust

March 07, 2005 19:31 ET

Avenir Diversified Income Trust Announces Pricing of Public Offering and March Distribution




MARCH 7, 2005 - 19:31 ET

Avenir Diversified Income Trust Announces Pricing of
Public Offering and March Distribution

CALGARY, ALBERTA--(CCNMatthews - March 7, 2005) - Avenir Diversified
Income Trust (the "Trust") (TSX:AVF.UN) is pleased to announce that it
has finalized the pricing of its previously announced public offering at
a price of $10.90 per unit.

As previously announced, the Trust is proceeding with a commercially
reasonable efforts trust unit financing by way of long form prospectus
through a syndicate of agents, co-led by GMP Securities Ltd. and Raymond
James Ltd., and including First Associates Investments Inc., Canaccord
Capital Corporation, and Acumen Capital Finance Partners Limited, for
minimum proceeds of $95,000,000 and maximum proceeds of $110,000,000
with an over-allotment option in favour of the agents for additional
units equal to 15% of the maximum offering for additional proceeds of up
to $16,500,000. Net proceeds of the financing will be used primarily to
complete the acquisition of Elbow River Resources Ltd., which acts as a
wholesale broker, transporter and supplier of butane and propane, and to
repay debt incurred in connection with the Trust's previously announced
oil and gas acquisitions. The remaining proceeds will be used for growth
capital expenditures associated with the Trust's financial services,
energy services, and real estate operations.

The Trust is proceeding to file a final long form prospectus for the
financing dated March 7, 2005. The closing of this offering is expected
to occur on or about March 21, 2005. Accordingly, the Board of Directors
of the Trust has declared a proportional distribution to be made to
Unitholders of record at the close of business on March 20, 2005 for the
period from March 1, 2005 to March 20, 2005. A second proportional
distribution has been declared with a record date of March 31, 2005 for
the period from March 21, 2005 through March 31, 2005. The aggregate
distributions approved for the month are $0.106 per unit, which, subject
to the above-described pro-ration, will be paid on April 15, 2005.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities offered have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities
Act") or any state securities laws and may not be offered or sold in the
United States except in certain transactions exempt from the
registration requirements of the U.S. Securities Act and applicable
state securities laws.

Not for Distribution to U.S. Newswire Services or for Dissemination in
the United

Forward-Looking Statements

Certain information set forth in this press release, including a
discussion of future plans and operations, contains forward looking
statements that involve substantial known and unknown risks and
uncertainties. These forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond management's control,
including but not limited to, the impact of general economic conditions,
industry conditions, fluctuation of commodity prices, fluctuation of
foreign exchange rates, environmental risks industry competition,
availability of qualified personnel and management, stock market
volatility, timely and cost effective access to sufficient capital from
internal and external sources. Actual results, performance or
achievement could differ materially from those expressed in or implied
by these forward-looking statements.


Contact Information

    Avenir Diversified Income Trust
    William Gallacher
    Chief Executive Officer
    (403) 237-9949
    (403) 237-0903 (FAX)
    Avenir Diversified Income Trust
    Gary Dundas
    Chief Financial Officer
    (403) 237-9949
    (403) 237-0903 (FAX)
    Avenir Diversified Income Trust
    Suite 300, 808 - 1st Street S.W.
    Calgary, Alberta T2P 1M9
    The TSX Exchange has not reviewed and does not accept responsibility for
    the adequacy or accuracy of this release.