Hardwoods Distribution Income Fund

Hardwoods Distribution Income Fund

May 20, 2011 17:20 ET

Hardwoods Distribution Income Fund Announces Court Approval of Conversion to a Corporation

LANGLEY, BRITISH COLUMBIA--(Marketwire - May 20, 2011) -


Hardwoods Distribution Income Fund (the "Fund") (TSX:HWD.UN) announced that it has obtained, today, a final order from the Supreme Court of British Columbia approving the previously announced conversion of the Fund's trust structure to a publicly traded corporation named Hardwoods Distribution Inc.

It is presently anticipated that the conversion will be effective on or about July 1, 2011, at which point all of the units of the Fund held by unitholders will be exchanged for common shares of Hardwoods Distribution Inc. on a one-for-one basis and all of the Class B limited partner units in the Fund's operating subsidiaries, Hardwoods Specialty Products LP and Hardwoods Specialty Products US LP, held by Sauder Hardwoods Inc. and Hardwoods Inc. will be exchanged for common shares of Hardwoods Distribution Inc. on the basis of 0.3793 common shares of Hardwoods Distribution Inc. per Class B limited partner unit. Following completion, the common shares of Hardwoods Distribution Inc., the successor to the Fund, are expected to be listed for trading on the Toronto Stock Exchange under the symbol "HWD".

About the Fund

The Fund is an unincorporated, open-ended, limited purpose trust established to hold, indirectly, securities which represent an 80% ownership interest in Hardwoods.

About Hardwoods

Hardwoods is one of North America's largest distributors of high-grade hardwood lumber and sheet goods to the cabinet, moulding, millwork, furniture and specialty wood products industries. The company currently operates a network of 26 distribution centers in the U.S. and Canada.

Forward-Looking Statements


This news release includes forward-looking statements. These involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", "expect", "may", "plan", "will", and similar terms and phrases, including references to assumptions. In particular, this news release contains forward-looking information and statements relating to the expectations of the Fund regarding the proposed conversion including, but not limited to: timing, completion and receipt of necessary approvals of the conversion.

These forward looking statements reflect current expectations of the Fund's management regarding future events and operating performance as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the failure to receive approval of the conversion from third parties or regulatory authorities or to realize the anticipated benefits of the conversion.

Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Fund cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements reflect management's current beliefs and are based on information currently available to the Fund.

All forward-looking information in this news release is qualified in its entirety by this cautionary statement and, except as may be required by law, the Fund undertakes no obligation to revise or update any forward looking information as a result of new information, future events or otherwise after the date hereof.

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