Front Street Energy Growth Fund Inc.

Front Street Energy Growth Fund Inc.

October 02, 2014 17:33 ET

Front Street Energy Growth Fund Inc. Labour Sponsored Fund - Redemption of All Outstanding Shares

TORONTO, ONTARIO--(Marketwired - Oct. 2, 2014) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES

Front Street Energy Growth Fund Inc. (the "Fund") and its manager, Front Street Capital 2004 (the "Manager"), announce that at the Annual and Special Meeting of Shareholders held September 30, 2014, the Class A shareholders and the Class B shareholder approved a special resolution authorizing the following:

  1. the amendment to the Fund's articles to include a procedure to enable the redemption of Class A shares and Class B shares at the same time in connection with the Fund's wind-up and dissolution;
  2. the Fund's voluntary wind-up and dissolution pursuant to the Canada Business Corporations Act and the Income Tax Act (Canada);
  3. the Fund using all or substantially all of its assets, after the payment of, and providing for, all debts, obligations and liabilities, to redeem the following on October 6, 2014:
    1. all the Class B shares, paying out a total of $100 for the 100 issued and outstanding Class B shares, being the $1.00 per share amount of their paid up capital, and
    2. all the issued and outstanding Class A shares, paying out Fund assets to the Class A shareholders, and
  4. the filing of articles of dissolution.

Articles of amendment have been filed and the redemption of the Class A shares and Class B shares of the Fund will proceed effective October 6, 2014. An appropriate cash reserve will be held back to finance expenditures expected from now to the date of dissolution. Following the payment of all its debts, obligations and liabilities related to the dissolution, any reserved cash that remains will be distributed to Class A shareholders at a later date.

Shareholders who have held their shares for less than eight (8) years and who submit their shares for redemption now, or who are automatically redeemed on October 6, 2014, will not be subject to the special tax pursuant to section 211.8(1) of the Income Tax Act (Canada).

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