Benvest New Look Income Fund

Benvest New Look Income Fund

April 28, 2009 13:38 ET

Benvest New Look Income Fund Announces Normal Course Issuer Bid

MONTREAL, CANADA--(Marketwire - April 28, 2009) - Benvest New Look Income Fund (the "Fund") (TSX:BCI.UN) announced today that it has received approval from Toronto Stock Exchange ("TSX") to proceed with a normal course issuer bid. Under the bid, the Fund may purchase up to 300,583 units ("Units") of the Fund, which is 5% of the issued and outstanding Units as at April 27, 2009. The average daily trading volume for the six calendar months preceding April 1, 2009 represents 1,365 Units. In accordance with TSX rules, the Fund may repurchase up to 1,000 Units on a daily basis. The bid will start on May 1, 2009, and may continue to April 30, 2010. The Units will be purchased on behalf of the Fund by a registered broker through the facilities of TSX. The price paid for the Units will be the market price at the time of acquisition, and the number of Units purchased and the timing of any such purchases will be determined by the Fund, subject to the terms of an automatic unit purchase plan. All Units purchased by the Fund will be cancelled. The Fund currently has 6,011,661 Units outstanding. During the past 12 months, no Units were purchased by the Fund.

The Fund also announced that it will implement an automatic unit purchase plan with a broker in order to facilitate repurchases of its Units under its normal course issuer bid. Under the Fund's automatic unit purchase plan, the Fund's broker may repurchase Units under the normal course issuer bid at any time including, without limitation, when the Fund would ordinarily not be permitted to due to regulatory restrictions or self-imposed blackout periods. Purchases will be made by the Fund's broker based upon the parameters prescribed by TSX and applicable Canadian securities laws and the terms of the parties' written agreement. The automatic unit purchase plan has been reviewed by TSX. The automatic unit purchase plan will be implemented effective as of May 1, 2009 and for the duration of the bid.

The Fund believes that its Units may trade in price ranges which do not fully reflect the value of the Units. As a result, the Fund believes that the purchase of its outstanding Units may represent an appropriate use of its funds.

On May 1, 2005, Benvest Capital Inc. was converted into an income trust named the Benvest New Look Income Fund, the purpose of which is to hold securities of New Look Eyewear Inc. This subsidiary is a leading enterprise in the eye care industry in Eastern Canada, with growth opportunities based on demographic trends and the consolidation of the industry in Canada. As of April 27, 2009, 6,011,661 units of the Fund were issued and outstanding. In addition, 3,870,404 exchangeable shares (on a consolidated basis) of the subsidiary were also issued and outstanding.

This press release may contain certain forward-looking statements that reflect the current views and / or expectations of Benvest New Look Income Fund with respect to its performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions. Actual results and events may vary. The statements contained in this release are not to be construed as tax advice and holders of units and exchangeable shares should seek their own independent tax advice.

Contact Information

  • Benvest New Look Income Fund
    Lise Melanson
    514-877-4299, ext. 2234.