Dominion Citrus Income Fund
TSX : DOM.UN

Dominion Citrus Income Fund
Dominion Citrus Limited
TSX : DMN.PR.A

Dominion Citrus Limited

March 16, 2011 17:04 ET

Dominion Citrus Income Fund (TSX:DOM.UN) and Dominion Citrus Limited (TSX:DMN.PR.A): Lease Surrender Agreement Executed for Kelfield Warehouse Facility

TORONTO, ONTARIO--(Marketwire - March 16, 2011) - Dominion Citrus Income Fund (the "Fund") (TSX:DOM.UN) and Dominion Citrus Limited ("DCL") (TSX:DMN.PR.A) (together the "Company" or "Dominion") jointly announce the execution of a Lease Surrender Agreement ("Lease Surrender") with the landlord of Dominion's 51 Kelfield Street warehousing facility. The lease surrender will require (i) a $750,000 payment from Dominion Citrus Limited to the Landlord in six payments between closing and August 15, 2011; and (ii) the sale to the Landlord (at no expense to the Landlord) of all existing racking and refrigeration equipment at the facility.

Dominion's existing lease to 2020 will be substantially amended. The Company will lease back certain processing and storage space on a 3-year lease but will be subject to a termination clause should the Landlord find a more suitable tenant(s). The Lease Surrender will have no negative effect on Dominion's existing businesses. The Company will use extra third party storage when required to augment the leased storage space and will continue to lease the processing space it requires. The Lease Surrender will reduce yearly lease expense by approximately $760,000.

The Fund is continuing to move towards the rights offering as previously announced on November 29, 2010. A further announcement will be made in due course.

Caution regarding Forward-Looking Statements

This release contains statements, which, to the extent that they are not a recitation of historical fact, may constitute "forward-looking statements". Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or performance, or our underlying assumptions. The words "estimate", "anticipate", "believe", "expect", "intend" or other similar expressions of future or conditional verbs such as "will", "should", "would" and "could" are intended to identify forward- looking statements. Persons reading this press release are cautioned that such statements are only expectations, and that our actual results or performance may be materially different.

Forward-looking information involves certain risks, assumptions, uncertainties and other factors which may cause actual future results to differ materially from those expressed or implied in any forward-looking statements.

Readers should not place undue reliance on these forward-looking statements when making decisions, and should consider the date onto which the statements were made. Except as required by applicable security law, management disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Dominion

Dominion is a diversified food company supplying fresh produce to a wide variety of customers in retail, foodservice and food distribution businesses. The Company provides procurement, processing, repacking, sorting, grading, warehousing and distribution services to its major domestic markets being Ontario and Quebec. The Company also supplies products to customers in the United States. Dominion is a subsidiary of the Fund. The Fund is a publicly traded, unincorporated, open-ended limited purpose income trust. The trust units are listed on the TMX under the symbol DOM.UN. Dominion's website may be accessed at www.dominioncitrus.com.

Contact Information

  • Investors & Media
    Jason Fielden
    President & CEO
    (416) 242-8341 Ext 250