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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Bat Man who wrote (490)	9/7/2000 4:31:13 PM
From: russet	Read Replies (3) \| Respond to of 11633

Second trust (PWI.UN did it a couple days ago) to sell some new trust units below the current market price. PWI.UN (was at $8.75) traded down to near the new unit price ($8.35) pretty quickly, so one might think that Enerplus (ERF.G units, current price $24.20) might collapse closer to the new issue price too ($23.10),...bummer! Perhaps the trusts, with their better industry contacts, see that oil prices could start dropping soon (maybe after the OPEC conference), so now is the time to float new trust units to pay down debt and fund new acquisitions. To sell, or not to sell?? :-((( Enerplus to sell 1.5 million trust units Enerplus Resources Fund ERF.G Shares issued 39,112,874 Sep 6 close $24.30 Thu 7 Sept 2000 News Release An anonymous director reports Enerplus Resources has entered into an agreement to sell, to a syndicate of underwriters led by CIBC World Markets Inc., 1.5 million trust units at $23.10 per trust unit to raise gross proceeds of approximately $35-million on a bought-deal basis. Enerplus has granted the underwriters an option, exercisable in whole or in part prior to closing, to purchase up to an additional 225,000 trust units at the same offering price. The issue will be offered in all provinces of Canada. Closing is expected to occur on Sept. 29, 2000. Net proceeds from the issue will be used for general corporate purposes, including capital expenditures, recent acquisitions and related indebtedness, and in the interim, to repay outstanding indebtedness. The securities being offered by Enerplus have not been, nor will 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 applicable exemption from the registration requirement of such act. This release does not constitute an offer for sale of trust units in the United States and any public offering of trust units in the U.S. will be made by means of a prospectus. (c) Copyright 2000 Canjex Publishing Ltd. stockwatch.com