The Consumers' Waterheater Income Fund Unitholders Approve Conversion to a Corporation
TORONTO, ONTARIO -- (MARKET WIRE) -- 11/25/10 --
The Consumers' Waterheater Income Fund ("Fund") (TSX: CWI.UN) and The Consumers' Waterheater Operating Trust ("Trust") today announced that at the Fund's special meeting of unitholders held today in Toronto, Ontario, unitholders approved the Fund's previously announced conversion from an income trust to a dividend-paying corporation (the "Conversion"). The name of the successor corporation to the Fund will be EnerCare Inc. ("EnerCare") and the name of the successor corporation to the Trust will be EnerCare Solutions Inc. ("EnerCare Solutions"). The Conversion was approved with 99.8 percent of the units represented at the meeting voting in favour.
An option plan for EnerCare, which will become effective upon completion of the Conversion, was also approved by the unitholders, with approximately 95 percent of the units represented at the meeting voting in favour.
Based on its tabulation of proxies received as at the commencement of the special meeting, the required 66 2/3% of voting unitholders did not vote in favour of the resolution to approve the shareholder rights plan for EnerCare (the "Rights Plan"). As a result, the Fund withdrew the approval of the Rights Plan from consideration at the meeting.
Subject to the approval of the Ontario Superior Court of Justice at a hearing to be held on November 29, 2010, and regulatory approvals, the Conversion is expected to become effective on January 1, 2011.
About The Consumers' Waterheater Income Fund
The Fund and Trust own a portfolio of approximately 1.3 million installed water heaters and other assets, rented primarily to residential customers in Ontario. The Fund 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 the Fund and Trust, including their respective current Annual Information Forms, is available on SEDAR at www.sedar.com.
Certain statements in this news release are forward-looking statements, which reflect management's expectation regarding the Fund's, the Trust's, EnerCare's and EnerCare Solutions' growth, results of operations, performance, business prospects and opportunities. Such forward-looking information reflects management's current beliefs and is based on information available to them and/or assumptions management believes are reasonable. Many factors could cause results to differ materially from the results discussed in the forward-looking information. These factors include risks associated with the inability to obtain required consents or approvals, including the Ontario Superior Court of Justice, and failure to realize the anticipated benefits of the Conversion. Although the forward-looking information is based on what management believes to be reasonable assumptions, the Fund and
Trust cannot assure investors that actual results will be consistent with this forward-looking information. Except as required by applicable securities laws, none of the Fund, EnerCare, the Trust nor EnerCare Solutions intend and do not assume any obligation to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.
The Consumers' Waterheater Income Fund
The Consumers' Waterheater Operating Trust
1.905.695.7793 or 1.800.781.2943
Source: The Consumers' Waterheater Income Fund and The Consumers' Waterheater Operating Trust
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