Phoenix Technology Income Fund
TSX : PHX.UN

Phoenix Technology Income Fund

June 25, 2009 10:00 ET

Phoenix Technology Income Fund Announces Adoption of Distribution Reinvestment Plan

CALGARY, ALBERTA--(Marketwire - June 25, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Phoenix Technology Income Fund ("Phoenix") (TSX:PHX.UN) announces that it has adopted a distribution reinvestment plan (the "DRIP"). Eligible unitholders may elect to participate in the DRIP commencing with the July distribution to be paid on August 14, 2009 to unitholders of record on July 31, 2009.

The DRIP allows eligible unitholders of Phoenix to direct that their cash distributions be reinvested in additional trust units which, when issued from treasury, will be issued at 95% of the Average Market Price (as defined in the DRIP) on the applicable distribution payment date.

While it is currently the intention of Phoenix to issue the required additional trust units through treasury, the administrator of Phoenix may, from time to time, in its discretion, direct that such trust units be purchased through the facilities of the Toronto Stock Exchange at prevailing market prices. Phoenix reserves the right to limit the amount of new equity available under the DRIP on any particular distribution date. Accordingly, participation may be prorated in certain circumstances in which case participant unitholders will receive from the Fund the regular cash distributions to which they would otherwise be entitled on such date and which are not reinvested as a result of such proration.

A registered unitholder who wishes to enroll in the DRIP for the July 2009 distribution must deliver a completed enrollment form to Computershare Trust Company of Canada, as Plan Agent, before 5:00 p.m. (EST time) on July 24, 2009. Beneficial unitholders who wish to participate in the DRIP should contact the broker or other nominee through which their units are held to provide appropriate enrollment instructions and to ensure any deadlines or other requirements that such broker or nominee may impose or be subject to are met. Enrollment forms for both registered and beneficial unitholders received after the July enrollment deadline will be accepted but only effective for subsequent distributions.

A complete copy of the DRIP is available by following the "Unitholder Information - DRIP" link on the "Investors" page of Phoenix's website at www.phoenixcan.com or from Computershare by calling 1-800-564-6253. Unitholders should carefully read the complete text of the DRIP before making any decisions regarding their participation in the DRIP.

No commissions, service charges or brokerage fees are payable in connection with the purchase of units from Phoenix's treasury under the DRIP. Eligible unitholders who wish to participate in the DRIP indirectly through the broker or other nominee through which their units are held should consult such broker or nominee to confirm whether commissions, service charges or other fees are payable.

Participation in the DRIP does not relieve unitholders of any liability for taxes that may be payable in respect of distributions that are reinvested in new units under the DRIP. Unitholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances.

Please note that registered and beneficial owners of Phoenix trust units who are not resident in Canada are not eligible to participate in the DRIP.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1993, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

About Phoenix Technology Income Fund

Phoenix provides horizontal and directional drilling services to oil and natural gas exploration and development companies in Canada and the United States. Phoenix's trust units are listed on the Toronto Stock Exchange under the symbol "PHX.UN".

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Phoenix Technology Income Fund
    John Hooks
    President and Chief Executive Officer
    (403) 543-4466
    or
    Phoenix Technology Income Fund
    Cameron Ritchie
    Senior Vice-President, Finance and Chief Financial Officer
    (403) 543-4466
    Website: www.phoenixcan.com