Foremost Income Fund

Foremost Income Fund

March 17, 2015 17:15 ET

Foremost Income Fund Reviews Redemption Price

CALGARY, ALBERTA--(Marketwired - March 17, 2015) - Foremost Income Fund ("Foremost" or the "Fund") reviews the redemption price pursuant to section 6.3 of the deed of Trust.

Redemption Price Determination Pursuant to Section 6.3 of the Deed of Trust

Pursuant to s. 6.3 of the Deed of Trust of the Fund dated November 12, 2005 as amended (the "Deed of Trust"), the Trustees are required to determine the redemption price to be paid in respect of units tendered for redemption, at an amount that is not less than 10% lower, nor more than 10% higher than, the tangible book value per unit of the Fund then in effect. The redemption price may be revised from time to time in the Trustees' discretion due to a Material Change (as defined in the Deed of Trust).

Due to concerns as to the potential impact of current and expected market conditions on the Fund's performance, and the resultant potential for an impairment of the value of the Fund's assets, in turn affecting the Fund's tangible book value, the Trustees have determined pursuant to s. 6.3 of the Deed of Trust that as of March 17, 2015, the Fund will redeem tendered trust units for $5.75 per unit.

This does not impact and is subject to the Trustees' earlier determination to set the cash limit for unit redemptions at $0.00, thereby providing that all redemptions received in the month of March, 2015, shall be redeemed in exchange for promissory notes, as disclosed in the press release and accompanying material change report issued on March 13, 2015.

This discussion is intended for summary purposes only and is subject in all respects to the Deed of Trust. The income and other tax consequences of holding, redeeming or disposing of units and acquiring promissory notes will vary depending on the unitholder's particular circumstances, including the jurisdiction(s) in which the unitholder resides or carries on business, and whether the unitholder is an RRSP, RESP, RRIF, PPSP or TFSA. Accordingly, this summary is of a general nature only and is not intended to be legal or tax advice to any prospective purchaser or any unitholder. All unitholders should consult their own legal and tax advisors prior to redeeming units of the Fund.

On behalf of the Trustees Foremost Income Fund

Bevan May, Interim President/CEO and Trustee


Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements include statements the Fund's intention to proceed with a Unitholders' meeting and information regarding the Trustees' views of the future prospects and tax treatment of the Fund and tax treatment of the Special Redemption, the Fund's expectations regarding the future availability of cash to meet redemption requests and the Trustee's expectations for redemption prices in December 2011 and January 2012. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates and stock market volatility.

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