Phoenix Technology Income Fund
TSX : PHX.UN

Phoenix Technology Income Fund

May 02, 2008 08:26 ET

Phoenix Technology Income Fund Announces Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - May 2, 2008) - Phoenix Technology Income Fund ("Phoenix") (TSX:PHX.UN) is pleased to announce that it has entered into an agreement to sell, on a bought deal basis, to a syndicate of underwriters, 1,250,000 trust units at $14.30 per trust unit for gross proceeds of approximately $17,875,000. The syndicate of underwriters will be led by Peters & Co. Limited and will include Wellington West Capital Inc., FirstEnergy Capital Corp., Blackmont Capital Inc. and Cormark Securities Inc. (collectively, the "Underwriters"). The trust units will be offered by way of short form prospectus in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario. The offering is expected to close on or about May 27, 2008, subject to certain conditions including, without limitation, the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange.

The net proceeds of the offering will be used to fund Phoenix's recently announced expanded 2008 capital expenditure program and for general corporate purposes.

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 information in this news release contains certain forward looking statements relating to the anticipated closing of the offering which involves substantial and unknown risks and uncertainties, certain of which are beyond Phoenix's control, including: the impact of general economic conditions, industry conditions, changes in laws and regulations including changes in tax laws and changes in how they are interpreted and enforced, fluctuations in commodity prices and foreign exchange and interest rates, stock market volatility and obtaining required approvals of regulatory authorities. No assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur or, if any of them do what benefits that Phoenix will derive from them. The closing of the offering could be delayed if Phoenix is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not completed at all if these approvals are not obtained or some other condition to the closing of the offering is not satisfied. Accordingly, there is a risk that the proposed offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by Phoenix might change if the Board of Directors of Phoenix Technology Services Inc. determines that it would be in the best interests of Phoenix to deploy the proceeds for some other purpose.

The securities offered will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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
    Chief Financial Officer
    (403) 543-4466
    Website: www.phoenixcan.com