Chesswood Income Fund Converts To A Corporation
Chesswood Group Limited is pleased to confirm the closing of the previously announced conversion of the trust structure of Chesswood Income Fund.
- (1888PressRelease) January 05, 2011 - Taxation Levels in 2011 Expected to Remain Similar to 2010
TORONTO - Chesswood Group Limited (the "Company") (TSX: CHW) is pleased to confirm the closing of the previously announced conversion of the trust structure of Chesswood Income Fund (the "Fund") to the Company, a dividend paying corporation, effective January 1, 2011, pursuant to a plan of arrangement under the Business Corporations Act (Ontario).
Holders of the Fund's trust units will receive common shares ("Common Shares") of the Company on a one-for-one basis.
All of the members of the Board of Trustees of the Fund and the Board of Directors of the Fund's administrator are continuing as the directors of the Company. Senior management of the Company will remain unchanged.
Trading of the Common Shares on the Toronto Stock Exchange will commence at the opening of the market on January 4, 2011 under the symbol "CHW". Concurrently, the Fund's trust units will be delisted.
The Company's level of taxation in 2011 is generally expected to be the same as the level of taxation for the Fund in 2010.
The Fund was paying a monthly distribution of $0.045 per trust unit. It is expected that the Company will pay monthly per share dividends equal to the monthly per trust unit distributions paid by the Fund. The amount of any dividends payable by the Company will be at the discretion of the board of directors of the Company, will be evaluated on an ongoing basis, and may be revised subject to business circumstances and expected capital requirements depending on, among other things, the Company's earnings, financial requirements for its operating entities, growth opportunities, the satisfaction of applicable solvency tests for the declaration and payment of dividends and other conditions existing from time to time.
About Chesswood Group Limited
As the successor to the Fund, the Company is a financial services company with operating businesses in both Canada and the U.S., including the commercial leasing business carried through its Pawnee Leasing Corporation subsidiary and automotive dealership business carried on by Sherway LP.
Contact:
Barry Shafran
Chesswood Group Limited
416-386-3099
bshafran ( @ ) chesswoodgroup dot com
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
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