CanWel Building Materials Group Ltd.
TSX : CWX.UN

CanWel Building Materials Group Ltd.

June 05, 2008 17:00 ET

CanWel Building Materials Income Fund Renews Normal Course Issuer Bid

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2008) -

NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES

CanWel Building Materials Income Fund ("CanWel" or the "Fund") (TSX:CWX.UN) announced today that The Toronto Stock Exchange has accepted CanWel's notice of intention to renew its normal course issuer bid through the facilities of The Toronto Stock Exchange.

CanWel intends to purchase for cancellation up to 1,914,954 of its trust units by way of a normal course issuer bid through the facilities of The Toronto Stock Exchange. The 1,914,954 trust units represent approximately 10% of the public float. Pursuant to TSX policies, daily purchases made by CanWel will not exceed 7,483 common shares or 25% of the average daily trading volume of 29,932 common shares on the TSX, subject to certain prescribed exceptions. As of June 2, 2008, there were 24,449,877 issued and outstanding trust units of CanWel.

Although CanWel intends to purchase units for cancellation under its normal course issuer bid, there can be no assurances that any such purchases will be completed. Such purchases, if any, may commence on June 11, 2008 and will terminate on June 10, 2009, or on such earlier date as CanWel may complete its purchases pursuant to the notice of intention filed today with The Toronto Stock Exchange or provide notice of termination. Any such purchases will be made by CanWel at the prevailing market price at the time of acquisition and through the facilities of The Toronto Stock Exchange.

CanWel believes that the market price of the trust units may, at certain times throughout the duration of the normal course issuer bid, be undervalued based solely on CanWel's opinion of its future prospects. Pursuant to the NCIB program which is now ending, CanWel repurchased and cancelled 1,754,555 units at a weighted average price of $4.80.

To the best of the knowledge of the trustees and senior officers of CanWel, no trustee, senior officer, associate of a trustee or senior officer, or person holding 10% or more of the trust units of CanWel intends at present to sell trust units during the course of this bid. However, sales by such persons through the facilities of The Toronto Stock Exchange or elsewhere may occur as the personal circumstances or decisions of any such person, unrelated to the bid, determine. The benefits to any such person whose trust units are purchased would be the same as the benefits available to all other holders whose trust units are purchased.

About CanWel.

The Fund trades on the Toronto Stock Exchange under the symbol CWX.UN and is one of Canada's largest national distributors in the building materials and related products sector, operating 17 distribution centres across Canada. The Fund distributes a wide range of hardware, building materials, lumber and renovation products.

Further information can be found in the disclosure documents filed by CanWel Building Materials Income Fund with the securities regulatory authorities, available at www.sedar.com.

Certain statements in this press release may constitute "forward-looking" statements. When used in this press release, such statements use words, including but not limited to, "may", "will", "expect", "believe", "plan", "intend", "anticipate" and other similar terminology. These forward-looking statements reflect the current expectations of CanWel's management regarding future events and operating performance, but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, activities or achievements of the Fund, including the performance of, and cash flow generated by the Fund, to be materially different from any future results, performance, activities or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These factors may include, but are not limited to: (i) fluctuations in the market price of the Fund's trust units from time to time, (ii) the availability of funding under CanWel's existing senior credit facility to finance acquisitions of trust units of the Fund, and (iii) additional risks and uncertainties affecting the Fund, any of which may impact upon, among other things, the number of trust units, if any, to be acquired by CanWel pursuant to the above notice of intention. A further description of these additional factors can be found in the periodic and other reports filed by the Fund with Canadian securities commissions and available on Sedar (http://www.sedar.com) and include, among others: increased debt and interest costs, general economic and business conditions, product selling prices, product performance, design and liability risk, dependence on market economic conditions, sales and margin risk, competition, information systems risks, software and software design risk, availability of supply of products, risks associated with the introduction of new product lines, environmental risks, volatility of commodity prices, inventory risks, customer and vendor risks, acquisition and integration risks, credit risks and interest rate changes, operating costs, and competitive conditions. ,. These forward-looking statements speak only as of the date of this press release and, except as may be required by applicable law, the Fund does not undertake, and specifically disclaims, any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise.

Contact Information

  • CanWel Building Materials Income Fund
    Tom Donaldson
    President and CEO
    (604) 432-1400
    or
    CanWel Building Materials Income Fund
    Ali Mahdavi
    Investor Relations
    (416) 962-3300 or Toll Free: 1-866-430-6247
    Email: am@spinnakercmi.com