Tree Island Wire Income Fund

Tree Island Wire Income Fund

March 04, 2008 18:07 ET

Tree Island Unitholders Vote Overwhelmingly in Support of Incumbent Trustees

Of independent units, 88.8% back incumbents

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2008) - Tree Island Wire Income Fund (the "Fund") (TSX:TIL.UN) today announced that its unitholders have voted overwhelmingly in support of the incumbent Trustees and management in a proxy contest initiated by dissident The Futura Corporation.

Unitholders voted a total 16,366,186 units, representing 74.7% of Tree Island units outstanding. This includes 4,364,400 units voted by Futura, representing 19.9% of units outstanding. Of the units voted, 10,651,653 or 65.1% backed the incumbent Trustees. Of independent units voted (units excluding Futura), approximately 88.8% backed the incumbent Trustees.

"We thank our unitholders for their patience and time in reaching a decision and for their clear endorsement of Tree Island's Board, management and strategy as outlined in our Trustees' Circular," said Keith Purchase, Chairman of the Board of Trustees of Tree Island. "The vote confirms the Board's view that Futura should not be given control of the Fund without paying a premium to all unitholders."

"Looking forward, it is important that management and the Board remain focused on the Fund's primary objective, which is to effectively manage Tree Island in this difficult industry environment and to maximize value for all unitholders. As part of that exercise, the Board will review the Fund's capital structure, the possible sale of surplus land and other strategic initiatives," said Mr. Purchase.

"Our Board also recognizes that it is in the interests of the Fund and its unit holders to avoid the cost and distraction of any future proxy disputes. Accordingly, our goal is to put forward at the Annual General Meeting a high performing board slate that will work together effectively in the best interests of all unitholders of the Fund. We intend to try to build a consensus with Futura and other significant unitholders so that a reconstituted board can effectively lead Tree Island while providing proportional representation for qualified candidates who can make positive contributions," said Mr. Purchase.

The proxy vote involved a Futura resolution to remove five of eight incumbent Trustees. A second Futura resolution was not voted upon as a result of the defeat of the first Futura resolution.

About the Fund

The Fund was launched on November 12, 2002, with the completion of an Initial Public Offering. There are 21,918,400 units of the Fund outstanding, representing a 100% ownership interest in Tree Island.

The Fund's performance depends entirely on the performance of Tree Island.

Tree Island Profile

Headquartered in Richmond, British Columbia, Tree Island Industries produces wire products for a diverse range of construction, agricultural, manufacturing and industrial applications. Its products include bright wire, stainless steel wire and galvanized wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products, engineered structural mesh, fencing and other fabricated wire products. The company markets these products under the Tree Island, K-Lath, Halsteel, Tree Island Wire, Industrial Alloys and USA-Wire brand names. Tree Island also owns and operates a Hong Kong-based trading company that provides internaationally sourced products to Tree Island and its customers worldwide.

Forward-Looking Statements

This press release contains forward-looking statements based on assumptions considered reasonable at the time they were prepared. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. These statements speak only to the conditions in existence as of the date of this press release, and the Fund maintains no obligation to update such statements.

Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Such risks and uncertainties include, but are not limited to, risks associated with operations such as competition, dependence on the construction industry, supplies of raw materials, dependence on key personnel, labour relations, regulatory matters, environmental risks, the successful execution of acquisition and integration strategies, foreign exchange fluctuations, the effect of leverage and restrictive covenants in financing arrangements, product liability, the ability to obtain insurance, energy cost increases, the ability to fund necessary future capital investments, and changes in tax legislation.

Contact Information

  • Tree Island Industries Ltd.
    Brian Irving
    Chief Financial Officer
    (604) 523-4516
    Longview Communications Inc.
    Alan Bayless
    Media Contact
    (604) 694-6035
    Georgeson Shareholder Communications
    Unitholder Information
    Toll Free: 1-866-725-6498