PRT Forest Regeneration Income Fund

PRT Forest Regeneration Income Fund

December 21, 2010 14:19 ET

PRT Announces Intention to Convert to a Corporation

VICTORIA, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2010) - PRT Forest Regeneration Income Fund (TSX:PRT.UN) announced today that it intends to ask its Unitholders to approve the conversion of the Fund to a corporation at its annual and special meeting of Unitholders anticipated to be held in early June, 2011.

Details of the proposed conversion will be set out in an information circular of the Fund, expected to be sent to Unitholders in early May, 2011. The decision to propose conversion to a corporation is a result of the changes to the taxation of income funds which become effective January 1, 2011, and which makes the income fund structure a less advantageous form of business enterprise. The Fund currently anticipates that, subject to Unitholder and regulatory approvals, the effective date of the conversion will be on or about October 1, 2011.

About the Fund

PRT is the largest producer of container grown forest seedlings in North America, currently operating 12 nursery locations expected to produce approximately 130 million seedlings in 2010. Units of the Fund are listed for trading on the Toronto Stock Exchange under the trading symbol PRT.UN.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, production volumes and other statements that are not historical fact. Risks and uncertainties include, but are not limited to, the possibility that the proposed conversion to a corporation may not proceed either because it does not receive the requisite shareholder and regulatory approvals or for other reasons, agricultural risks, our ability to grow and supply products in accordance with defined specifications, customer credit risks, and other risks identified from time to time in the Fund's annual report, and annual information return. These risks and uncertainties may cause actual results to differ materially from the expectations expressed herein. As such, readers are cautioned to not to place undue reliance on forward-looking statements.

Forward-looking statements are based on current expectations and neither the Fund nor PRT assumes any obligation to update such information to reflect later events or developments, except as required by law.

Contact Information

  • PRT Forest Regeneration Income Fund
    Tony Pollard
    VP Finance/CFO
    (866) 553-8733 ext. 229