Exchange Industrial Income Fund
TSX VENTURE : EIF.UN

Exchange Industrial Income Fund

November 29, 2007 15:43 ET

Exchange Industrial Income Fund Announces $10 Million Offering of Trust Units

WINNIPEG, MANITOBA--(Marketwire - Nov. 29, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Exchange Industrial Income Fund (TSX VENTURE:EIF.UN) ("Exchange Industrial") announced that today it has entered into an agreement to sell to a syndicate of underwriters co-led by CIBC World Markets Inc., RBC Capital Markets, and Wellington West Inc., on a bought deal basis, 909,100 trust units ("Trust Units") at a price of $11.00 per Trust Unit for gross proceeds to Exchange Industrial of approximately $10.0 million (the "Financing"). The Financing is expected to close on or about December 20, 2007 and is subject to regulatory approval.

Exchange Industrial has also granted the underwriters an option (the "Over-Allotment Option") to purchase up to an additional 136,365 Trust Units for additional gross proceeds of $1.5 million.

The net proceeds of the Offering will be used to temporarily reduce outstanding indebtedness of Exchange Industrial's subsidiary, EIIF LP under the Credit Facility and upon closing of the Fund's proposed acquisition of Stainless Fabrications Inc. ("SFI"), funds from the Credit Facility will be used to finance the SFI acquisition.

The Trust Units have not been registered under the US. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

The statements contained in this news release that are forward-looking are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, the dependence of Exchange Industrial Income Fund on the operations and assets currently owned by it, the degree to which its subsidiaries are leveraged, the fact that cash distributions are not guaranteed and will fluctuate with the Fund's financial performance, dilution, restrictions on potential future growth, the risk of unitholder liability, competitive pressures (including price competition), changes in market activity, the cyclicality of the industries, seasonality of the businesses, poor weather conditions, and foreign currency fluctuations, legal proceedings, commodity prices and raw material exposure, dependence on key personnel, and environmental, health and safety and other regulatory requirements. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Exchange Industrial Income Fund with the securities regulatory authorities, available at www.sedar.com.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Exchange Industrial Income Fund
    Mike Pyle
    CEO
    (204) 982-1850
    (204) 982-1855 (FAX)
    Email: mpyle@eig.ca