January 25, 2008 08:00 ET

Eveready Income Fund Announces Normal Course Issuer Bid for Its Units

EDMONTON, ALBERTA--(Marketwire - Jan. 25, 2008) - Eveready Income Fund (TSX:EIS.UN) ("Eveready") announces that the Toronto Stock Exchange ("TSX") has accepted Eveready's Notice of Intention to Make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Eveready considers advisable, its issued and outstanding fund units ("Fund Units"). There are 71,610,833 Fund Units issued and outstanding on the date hereof (not including 13,706,377 exchangeable limited partnership units of a subsidiary which are the economic equivalent of Fund Units and exchangeable for Fund Units on a one for one basis). Of this amount, 50,940,182 Fund Units constitute the "public float", calculated in accordance with the rules of the TSX. Pursuant to the Bid, Eveready intends to purchase for cancellation up to a maximum of 5,090,401 Fund Units, being approximately 10% of Eveready's "public float" outstanding on the date hereof. Notwithstanding the foregoing, pursuant to the rules of the TSX, Eveready may not purchase more than 41,941 Fund Units in any one day, such amount being equal to 25% of the average daily trading volume of the Fund Units for the last six months. Purchases under the Bid will be made on the open market through the TSX. The price that Eveready will pay for any Fund Units purchased by it under the Bid will be the prevailing market price of the Fund Units on the TSX at the time of such purchase. The actual number of Fund Units that may be purchased under the Bid for cancellation and the timing of any such purchases will be determined by Eveready.

The Bid will commence on January 29, 2008 and will terminate on January 28, 2009 or such earlier time as the Bid is completed or terminated at the option of Eveready.

Although implementing a Bid may appear to contradict Eveready's newly stated distribution policy, it is not Eveready's long-term objective to purchase Fund Units for cancellation. Management of Eveready believes that, from time to time, the market price of the Fund Units may not fully reflect their underlying value and that at such times the purchase of Fund Units would be in the best interests of Eveready. If Eveready's market price were to experience abnormal weakness in the near future, such purchases would increase the proportionate interest of, and be advantageous to, all remaining unitholders.

Eveready has not made any purchases of Fund Units during the previous 12 months.

Eveready is a growth oriented income fund that provides industrial and oilfield maintenance and production services to the energy, resource, and industrial sectors. Operating from over 75 locations in Canada, the United States, and internationally, Eveready currently employs over 2,500 employees and operates a service fleet of over 1,000 trucks. Eveready is a leading provider of infrastructure services in Alberta's fast growing oil sands sector. The Fund Units of Eveready trade on the Toronto Stock Exchange under the trading symbol "EIS.UN".

This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Eveready to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services provided by Eveready, industry competition and Eveready's ability to attract and retain both customers and key personnel.

Contact Information

  • Eveready Income Fund
    Rod Marlin
    President & CEO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Eveready Income Fund
    Darren Stevenson
    (780) 451-6075
    (780) 451-2142 (FAX)
    Website: www.evereadyincomefund.com