EnerVest Diversified Income Trust

EnerVest Diversified Income Trust

January 17, 2011 19:39 ET

EnerVest Diversified Income Trust Files Final Prospectus for Offering of Warrants

CALGARY, ALBERTA--(Marketwire - Jan. 17, 2011) -


EnerVest Diversified Income Trust ("EnerVest" or the "Fund") (TSX:EIT.UN) is pleased to announce that it has filed its final prospectus for an offering of warrants (the "Warrants") to unitholders of the Fund (the "Offering"). Each unitholder of record on January 25, 2011 will be entitled to one-quarter of a Warrant for each EnerVest unit held. 

At any time prior to the expiry date of 5:00 p.m. (Calgary time) on September 20, 2011 each whole Warrant will entitle the holder to subscribe for one unit of EnerVest upon payment of the subscription price of $15.27 (the "Subscription Price"). The Subscription Price represents a 5% discount to the most recently calculated net asset value per unit prior to the date of filing the preliminary prospectus. The Warrants are also subject to a call right provision, which becomes effective on May 25, 2011. If the trading price of the units exceeds the Subscription Price for ten consecutive trading days, the Fund has the right to call the Warrants. If the Warrants are called, investors will have 20 business days to exercise them, after which they will expire. 

Warrants issued pursuant to the Offering will not be eligible to receive distributions. However, subject to applicable record dates, units received upon exercise of the Warrants will be eligible to receive distributions from the Fund.

The Warrants are being provided exclusively to EnerVest unitholders. Unitholders will have the opportunity to exercise their Warrants to acquire additional units at a pre-determined price potentially lower than the market price of EnerVest units. Exercising of the Warrants will provide the Fund with additional investment flexibility, allowing the Fund to take advantage of market opportunities and may reduce the ongoing management expense ratio of the Fund, for the benefit of all EnerVest unitholders.

The Warrants distributed under this prospectus have been conditionally approved for listing on the TSX under the symbol EIT.WT.A. The units issuable upon exercise of the Warrants will be freely tradable EnerVest units (EIT.UN). Once the Warrants begin trading, investors will have the opportunity to buy or sell the Warrants, which will trade independently of the existing EnerVest units. Warrants will be distributed to client accounts by brokers and custodians on a best-efforts basis after the record date. The Fund will pay an exercise fee of $0.30 per warrant at the time the warrant is exercised, payable to the investment advisor of the CDS participant whose client is exercising the warrant.

The Warrants are not qualified for distribution in the United States of America. For further details please consult the prospectus and your investment advisor. A copy of the final prospectus has been filed on SEDAR at www.sedar.com. Full details about this Offering will be available on our website at www.canoefinancial.com or you can contact us at 1-877-434-2796.

About the Fund

The Fund is one of Canada's largest, most liquid, diversified closed-end investment funds and is listed on the TSX under the symbol EIT.UN. EnerVest's portfolio is managed by Robert Haber of Haber Trilix Advisors, LP and is an actively managed, high-yielding diversified portfolio of income-generating and capital growth oriented securities listed primarily on the TSX. The Fund is designed to maximize distributions and net asset value for the benefit of its Unitholders.

About Canoe Financial

Canoe Financial is a privately owned investment management firm with over $1.6 billion in assets under management and a solid performance track record. Canoe is focused on helping Canadian investors and advisors meet their financial goals with well managed, diversified, tax effective investment products. Canoe also has expertise in energy and resource investments.

Forward Looking Statement: Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect Canoe Financial LP's and its affiliates ("Canoe") current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Canoe believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Canoe undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

This communication is not to be construed as a public offering to sell, or a solicitation of an offer to buy securities. Investors should contact their Investment Advisor to review their investment objectives and strategies. This information is for review purposes only, and investors should consult their Investment Advisor for complete details and risk factors on specific strategies and various investment products.

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