CAPVEST Income Corp.
TSX VENTURE : CVS

CAPVEST Income Corp.

August 09, 2006 10:57 ET

CAPVEST Income Corp. 'TSX-V: CVS' Rights Offering Fully Subscribed Raising $6.86 Million

TORONTO, ONTARIO--(CCNMatthews - Aug. 9, 2006) - CAPVEST Income Corp. (the "Corporation")(TSX VENTURE:CVS) is pleased to announce that the rights offering, which expired on August 1, 2006, closed today, raising aggregate gross proceeds of $6,860,921.



Rights offering results

The results of the rights offering are as follows:
-----------------------------------------------------------------------
Number of shares
issued under
Number of shares additional
initially subscribed subscription Total number of Total gross
for privilege shares issued proceeds
-----------------------------------------------------------------------
25,739,023 20,000,452 45,739,475 $6,860,921
-----------------------------------------------------------------------
The rights offering was oversubscribed by 3,390,176 shares.


Use of proceeds

The net proceeds of the rights offering will be invested by the Corporation in accordance with its investment objectives, subject to the investment restrictions of the Corporation.

Dealer manager

Blackmont Capital Inc. was engaged as the dealer manager (the "Dealer Manager") for the Rights Offering. The Corporation has paid the Dealer Manager a fee of $50,000 and $0.001 per common share issued under the Rights Offering. The Corporation will pay a subscription fee of $0.005 for each common share issued under the Rights Offering to members of the soliciting dealer group (including the Dealer Manager).

Investment objectives

The investment objective of CAPVEST Income Corp. is to generate capital appreciation and, to a lesser extent, income, through exposure to commodity-related investments, including commodity-related income trusts and the Rogers International Commodity Index (RICI).

Net asset value and trading price

As of August 3, 2006, the Corporation's net asset value was $0.24 per share and the closing price on the TSX Venture Exchange was $0.16 per share, representing a 33 per cent discount to the net asset value.

Trading information

CAPVEST Income Corp. common shares and convertible debentures trade on the TSX Venture Exchange under the symbols CVS and CVS.DB respectively.

Debentures

CAPVEST Income Corp. unsecured convertible debentures have an interest coupon of 7% per annum, payable quarterly, with a maturity date of December 31, 2008. On August 8, 2006, the closing price on TSX Venture Exchange was $99.00 per debenture.

Sentry Select Capital Corp.

Sentry Select Capital Corp. provides investment, administrative and marketing services to 32 exchange-listed closed-end funds and corporations, including preferred securities and debentures, 16 mutual funds, 15 principal-protected notes and three flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of June 30, 2006, the firm had over $8.0 billion in gross assets under management.



The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 861-8729
Fax: (416) 364-5615


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sentry Select Capital Corp.
    Investor Services (broker/investor inquiries)
    1 (888) 246-6656
    or
    Sentry Select Capital Corp.
    Kinga Lam (media inquiries)
    1 (888) 246-6656
    or
    Sentry Select Capital Corp.
    Kevin Cohen (Corporate Secretary)
    1 (888) 246-6656
    (416) 364-1197 (FAX)
    info@sentryselect.com
    www.sentryselect.com