Phoenix Technology Income Fund

Phoenix Technology Income Fund

October 16, 2008 18:14 ET

Phoenix Technology Income Fund Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Oct. 16, 2008) - Phoenix Technology Income Fund ("Phoenix" or the "Fund") (TSX:PHX.UN) is pleased to announce that the Toronto Stock Exchange ("TSX") has accepted the Fund's Notice of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Phoenix considers advisable, up to a maximum of 1,688,053 trust units ("Trust Units") of the Fund. The maximum number of Trust Units to be purchased pursuant to the Bid represents approximately 10% of the issued and outstanding Trust Units, which are not held by insiders of the Fund, on the date hereof. At the date hereof, there are 24,325,425 Trust Units issued and outstanding of which 7,444,895 Trust Units are held by senior officers or directors of Phoenix or any persons or companies who beneficially own, or exercise control or direction over, more than 10% of the issued and outstanding Trust Units. Purchases of Trust Units will be made on the open market through the facilities of the TSX. The price which Phoenix will pay for any Trust Units purchased by it will be the prevailing market price of the Trust Units on the TSX at the time of such purchase. The actual number of Trust Units that may be purchased for cancellation and the timing of any such purchases will be determined by Phoenix; however, the maximum Trust Units that the Fund may purchase for cancellation per trading day is 18,245, which is equal to 25% of the average daily trading volume for the six months prior to October 7, 2008. The average daily trading volume for such period was 72,980.

The Bid will commence on October 20, 2008 and will terminate on October 19, 2009 or such earlier time as the Bid is completed or terminated at the option of Phoenix. Peters & Co. Limited has agreed to act on the Fund's behalf to make purchases of Trust Units pursuant to the Bid.

Management of Phoenix believes that, from time to time, the market price of the Trust Units may not fully reflect the underlying value of the Trust Units and that at such times the purchase of Trust Units would be in the best interests of Phoenix. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining unitholders. In addition, the purchases by Phoenix may increase liquidity to unitholders wishing to sell their Trust Units.

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".

Contact Information

  • Phoenix Technology Income Fund
    John Hooks
    President and Chief Executive Officer
    (403) 543-4466
    Phoenix Technology Income Fund
    Cameron Ritchie
    Chief Financial Officer
    (403) 543-4466