Wajax Income Fund

Wajax Income Fund

June 21, 2005 10:19 ET

Wajax Income Fund Announces Closing Of Secondary Offering

MISSISSAUGA, ONTARIO--(CCNMatthews - June 21, 2005) - Wajax Income Fund ("Wajax" or the "Fund") (TSX:WJX.UN) today announced the closing of a secondary offering of trust units by a wholly-owned subsidiary of Empire Company Limited ("Empire"). The secondary offering of 2.5 million units was completed at a price of $19.25. Empire has also granted the underwriters an option to purchase an additional 375,000 units for the purpose of covering over-allotments, which option expires on July 21, 2005. The Fund will not receive any proceeds from the sale of the offered units. If the over-allotment option is exercised, Empire will hold 4,572,994 units of the Fund, representing 27.6% on fully-diluted basis.

The offering was underwritten by a syndicate of underwriters led by Scotia Capital Inc. and which included BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Sprott Securities Inc., Canaccord Capital Corporation and Desjardins Securities Inc.

Wajax has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, diesel engines and industrial components, through a network of over 100 branches across Canada and the western United States. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.

Wajax Income Fund will make its initial cash distribution on August 22, 2005 to unitholders of record on July 29, 2005. It is expected that the Fund will have an initial annual distribution of $2.20 per unit.

This news release contains forward looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Wajax. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Wajax does not assume any obligation to update or revise them to reflect new events or circumstances.

Contact Information

  • Wajax Income Fund
    Neil Manning
    President and Chief Executive Officer
    (905) 212-3300
    Wajax Income Fund
    John Hamilton
    Chief Financial Officer
    (905) 212-3300