Chesswood Income Fund Rights Offering
Chesswood Income Fund announced today that its rights offering was more than 56% over-subscribed.
- (1888PressRelease) July 02, 2010 - TORONTO - Chesswood Income Fund (the "Fund") (TSX:CHW.UN) announced today that its rights offering was more than 56% over-subscribed, so that it raised the maximum gross proceeds possible of $5.28 million. As a result, 1,320,799 Fund units are being issued at an exercise price of $4.00 per unit.
"We appreciate the tremendous support of our unitholders," said Barry Shafran, President and CEO. "Subscribing for more than the maximum amount possible reflects their confidence in Chesswood. It's also noteworthy that there was broad support for the offering from across our unitholder base."
Net proceeds from the offering will be used to support the growth of the Fund's Pawnee Leasing Corporation ("Pawnee") subsidiary, as well as for general corporate purposes.
As a result of issuances of Fund units under the rights offering and the exercise of previously granted options and restricted units, the Fund has 9,250,854 Fund units outstanding in addition to exchangeable shares (issued as part of the consideration to acquire Pawnee in 2006) entitling the holders to acquire 1,478,537 Fund units.
The Fund's transfer agent is in the process of distributing Fund units to participants in the rights offering, either directly or through their brokers.
About Chesswood Income Fund
Chesswood Income Fund is a financial services trust with operating businesses in both Canada and the U.S.
For more information visit www.ChesswoodFund.com.
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