Harvest Sustainable Income Fund

December 17, 2010 09:23 ET

Harvest Sustainable Income Fund Closes its $33 Million Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2010) - Harvest Portfolios Group Inc.(the "Manager") is pleased to announce that Harvest Sustainable Income Fund (the "Fund") has completed today its initial public offering (the "Offering") of 2,750,000 Units at a price of $12.00 per Unit for aggregate gross proceeds of $33,000,000. The Fund has granted the Agents an over-allotment option exercisable in whole or in part for a period of 30 days following the closing of the Offering.

The Units are now trading on the Toronto Stock Exchange under the symbol HSI.UN.

The Fund's investment objectives are:

  1. to provide holders of Units ("Unitholders") with monthly distributions; and

  2. to provide Unitholders with long-term capital preservation while reducing volatility.

The net proceeds of the Offering will be invested in a diversified portfolio of securities of primarily publicly-traded Canadian Sustainable Issuers in order to seek to provide investors with exposure to issuers that the Manager and Avenue Investment Management Inc. (the "Investment Manager") believe offer sustainable income, capital preservation and reduced volatility.

The Investment Manager 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, CIBC and RBC Capital Markets and includes Scotia Capital Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Canaccord Genuity Corp., Dundee Securities Corporation, Raymond James Ltd., Desjardins Securities Inc., Macquarie Private Wealth Inc., Wellington West Capital Markets Inc., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation (collectively, the "Agents").

Counsel on behalf of the Fund and the Manager is Borden Ladner Gervais LLP and counsel on behalf of the Agents is 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, the Manager and/or the Investment Manager. The forward-looking statements are not historical facts but reflect the Fund's, the Manager and/or the 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, the Manager 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, the Manager 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 defined in the Fund's prospectus dated November 26, 2010.

For further information: please contact Michael Kovacs at Harvest Portfolios Group Inc. at mkovacs@harvestportfolios.com or at 1-866-998-8298; or for additional information, please contact your registered financial advisor.

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