Harvest Banks & Building Income Fund

Harvest Portfolios Group Inc.

Harvest Portfolios Group Inc.

November 10, 2009 16:25 ET

Harvest Banks & Buildings Income Fund (TSX:HBB.UN)(TSX:HBB.WT) Raises an Additional $1,865,796 for Total Gross Proceeds of $25,865,796, as the Over-Allotment Option is Exercised by the Agents

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2009) -  Harvest Portfolios Group Inc. ("Harvest") is pleased to announce that today, the Harvest Banks & Buildings Income Fund (the "Fund")(TSX:HBB.UN)(TSX:HBB.WT) successfully issued an additional 155,483 Trust Units and 155,483 Warrants pursuant to the exercise by the Agents of their Over-Allotment Option. Total gross proceeds raised by the Fund was $25,865,796. The Units have separated into Trust Units and Warrants which now trade on the Toronto Stock Exchange independently under the symbols: HBB.un and HBB.wt.

The initial monthly cash distribution of $0.07 per Trust Unit is payable on December 15, 2009 to Unitholders of record on November 30, 2009. Additionally, each Warrant entitles the holder to purchase one Trust Unit at a subscription price of $12.00 on or before 5:00 p.m. (Toronto time) on, and only on, April 15, 2011.

The Fund's investment objectives are:

  1. to provide Unitholders with monthly distributions (initially targeted to be $0.07 per Trust Unit ($0.84 per annum) representing an annual cash distribution of 7.0% based on the $12.00 per Unit issue price); and
  2. to maximize total return for Unitholders.

The initial targeted monthly distributions for the 12 months ended October 29, 2010 are $0.07 per Trust Unit.

The net proceeds of the Offering will be invested in an actively managed portfolio that will consist primarily of securities of publicly-traded Canadian banking issuers, other financial issuers and real estate issuers.

Avenue Investment Management Inc. will be responsible for the execution of the Fund's overall investment strategy, including managing the composition of the portfolio of the Fund.

The syndicate of agents is being co-led by BMO Capital Markets and CIBC World Markets Inc. and includes Scotia Capital Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Raymond James Ltd., Blackmont Capital Inc., Dundee Securities Corporation, Wellington West Capital Markets Inc., Desjardins Securities Inc., GMP Securities L.P. and Industrial Alliance Securities Inc. (collectively, the "Agents").

Harvest and the Fund were represented by Borden Ladner Gervais LLP. The syndicate of Agents was represented by Blake, Cassels & Graydon LLP.

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund, Harvest and/or the Investment Manager. The forward-looking statements are not historical facts but reflect the Fund's, Harvest and/or Investment Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Fund, Harvest and/or the Investment Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward- looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Fund, Harvest and/or the Investment Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

All capitalized terms noted herein but not defined are as per the prospectus dated October 2, 2009.

Contact Information