TORONTO - January 4, 2011 - EnerCare Inc. ("EnerCare") (TSX:ECI) and EnerCare Solutions Inc. ("EnerCare Solutions") today announced that, effective January 1, 2011, The Consumers' Waterheater Income Fund (the "Fund") has completed its conversion from an income trust to a dividend-paying corporation (the "Conversion") in accordance with a final order issued by the Ontario Superior Court of Justice on November 29, 2010. The common shares and convertible debentures of EnerCare will commence trading on the Toronto Stock Exchange on January 5, 2011 under trading symbols "ECI" and "ECI.DB", respectively. The Fund's trust units and convertible debentures will be delisted by the end of the day on January 4, 2011.
It is expected that EnerCare will maintain the Fund's previous distribution level of $0.648 per share annually as monthly dividends of $0.054 per share, with the first dividend payable to shareholders of record on January 31, 2011. The dividend level is intended to allow for internally generated cash flow to support organic growth, maintain a strong balance sheet and provide sustainable monthly dividends to shareholders. The amount of any dividends payable by EnerCare will be at the discretion of its board of directors and will be evaluated periodically and may be revised depending on, among other factors, EnerCare's earnings, the financial requirements of EnerCare's operations, the satisfaction of solvency tests imposed by corporate law for the declaration and payment of dividends and other conditions that may exist from time to time.
Pursuant to the Conversion, effective January 1, 2011:
EnerCare and EnerCare Solutions own a portfolio of approximately 1.3 million water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns Stratacon Inc. and EnerCare Connections Inc., leading "smart" sub-metering companies, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.
Additional information regarding EnerCare and EnerCare Solutions is available on SEDAR at www.sedar.com.