XS Cargo Income Fund

XS Cargo Income Fund

May 09, 2005 14:48 ET

XS Cargo Income Fund Files Final Prospectus for $61 Million IPO


EDMONTON, ALBERTA--(CCNMatthews - May 9, 2005) - XS Cargo Income Fund (the
"Fund") is pleased to announce that the Fund has filed a final prospectus with
the securities regulatory authorities in each of the provinces of Canada in
connection with the Fund's initial public offering. The Fund will issue
6,106,000 trust units at $10.00 per unit for gross proceeds of $61,060,000.
After the closing of the offering, the Fund will hold approximately 51% of XS
Cargo Limited Partnership ("XS Cargo LP"), which will acquire, own and operate
the 21 stores operating under the name XS Cargo. XS Cargo has been in operation
since 1996 when it opened its first broadline closeout retail store in Edmonton,
Alberta. Closing is scheduled for May 17, 2005.

Upon completion of the offering and related transactions, XS Cargo LP will be
one of the largest broadline closeout retailers in Canada and will own and
operate 21 stores in the provinces of Alberta, British Columbia, Saskatchewan,
Manitoba and Ontario, with an additional 3 stores to be opened by the end of
June 2005.

The Fund intends to make monthly distributions of its distributable cash,
estimated at $1.125 per trust unit annually. The first distribution to
unitholders is expected to be July 15, 2005, for the period from closing to June
30, 2005, and is estimated to be $0.1387 per unit. The Toronto Stock Exchange
(the "TSX") has conditionally approved the listing of the trust units under the
symbol "XSC.UN", subject to the Fund satisfying the customary requirements of
the TSX.

The underwriting syndicate for the offering is led by CIBC World Markets Inc.
and includes RBC Capital Markets, National Bank Financial Inc., Canaccord
Capital Corporation and Sprott Securities Inc.

A copy of the Fund's final prospectus is available on SEDAR (www.sedar.com).

The securities offered have not been, and will not be, registered under the
United States Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration or any applicable exemption from the
registration requirement of such Act. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall there be any
sale of these securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful.

Contact Information

  • XS Cargo Income Fund
    Michael McKenna
    President and Chief Executive Officer
    (780) 413-4296
    XS Cargo Income Fund
    Jeff Rootman
    Vice-President, Finance and Chief Financial Officer
    (780) 413-4296
    Website: www.xscargo.com