Premium Brands Income Fund

Premium Brands Income Fund

November 15, 2006 15:03 ET

Premium Brands Income Fund Announces Intention to Make Normal Course Issuer Bid

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2006) - Premium Brands Income Fund (the "Fund") (TSX:PBI.UN) announced today acceptance by the Toronto Stock Exchange (the "TSX") of its Notice of Intention to Make a Normal Course Issuer Bid through the facilities of the TSX.

The Fund is proposing to purchase, for cancellation, 842,195 Units, which represents 5% of the issued and outstanding Units of the Fund for a period commencing November 20, 2006 to November 19, 2007 (the "Purchase Period"). As at the close of business on November 15, 2006 the total number of issued and outstanding Units of the Fund was 16,843,906. During any thirty (30) day period within the Purchase Period the Fund is limited to buying a maximum of 2% of the 16,843,906 issued and outstanding Units.

The Fund is proceeding with this Issuer Bid because its board of trustees believes that, in view of recent announcements concerning the tax treatment of income trusts, and otherwise from time to time, that the market price of the Fund's Units may not adequately reflect the current value of, or prospects for, the Fund's business. Accordingly, the Fund's board of trustees believes that the Fund's Units may, at such times, represent an attractive opportunity to realize additional unitholder value, and that the purchase of Units at such times would be an appropriate use of the Fund's available funds.

The Fund may commence purchases of Units on November 20, 2006, at times and in quantities determined by it. All purchases will be made on the open market through the facilities of the TSX in accordance with its policies. The price to be paid for the Units will be the market price at the time of acquisition. The Fund confirms that it has not made any purchase of its Units during the past 12 months.

Premium Brands owns a broad range of leading branded specialty food businesses with manufacturing and distribution facilities located in British Columbia, Alberta, Saskatchewan, Manitoba and Washington. In addition, the Fund owns proprietary food distribution and wholesale networks through which it sells both its own products and those of third parties to approximately 20,000 customers. The Fund's family of brands includes Grimm's, Harvest, McSweeney's, Quality Fresh Foods, Hempler's, Hygaard and Harlan's.

Contact Information

  • Premium Brands Income Fund
    George Paleologou
    (604) 656-3100
    Premium Brands Income Fund
    Will Kalutycz
    (604) 656-3100