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

To: Veteran98 who wrote (568)	10/19/2000 3:57:56 PM
From: Conky Lives!	Respond to of 11633

WFF.UN -does anyone have an opinion on this one? - it distributed $2.40 last week (return of capital) and was going to distribute $0.95 in December and delist. Now, according to today's news, the plan is to not delist and distribute $0.50 or an addition share in December. ---------- Proposes New Financing Plan To Unitholders 10/19/2000 08:27:00 / WESTERN FACILITIES FUND WESTERN FACILITIES FUND ("WFF.UN-T") - Proposes New Financing Plan To Unitholders Western Facilities Fund (the "Fund") is pleased to propose a new financing plan to its Unitholders in order that the Fund may have capital available to take advantage of business and investment opportunities which utilize its non-capital losses and tax pools. The Fund plans to hold a special meeting of Unitholders at the end of November to approve the new financing plan. Approval by two thirds of the votes cast at the meeting will be required in order for the plan to be adopted. The plan is also subject to regulatory approval. The Fund and its subsidiary, Nevis Ltd., have combined non-capital losses and tax pools totalling approximately $86 million or $4.34 per Unit, most of which expire in 2007. In order to generate the maximum value from these tax pools Unitholders will be asked to approve a new financing plan that will include the following: 1. The Fund will distribute $0.50 per Unit on or about December 28, 2000 rather than $0.95 per Unit as previously planned; 2. The Fund will provide all Unitholders with the opportunity to take this $0.50 distribution in cash or additional Units of the Fund on the basis of one Trust Unit for each $0.50; and 3. The Fund will retain the balance of the proceeds from the liquidation of the Fund's assets estimated at $0.50 per unit (comprised of $0.45 per unit being the balance of the previously-scheduled distribution and $0.05 per unit of existing working capital). By retaining a total of $0.50 per Unit, the Fund will have an initial capital base of approximately $10 million. Affiliates of the manager of the Fund, Brompton Management Limited, have agreed to take the December distribution in additional units which will provide approximately $2.4 million of additional capital to the Fund. If all Unitholders elect to take the December distribution in additional Units, the Fund will have approximately $20 million in capital available for investment and will have doubled the number of Units outstanding to 39.6 million. It is proposed that the business plan for the Fund will be to make investments and acquire assets that will generate high rates of pre-tax income. While any industry will be considered there will be an emphasis towards investment in the oil and gas sector. The Fund will search out investments and assets with high levels of current income such as oil and gas producing properties and mezzanine investments (high yield debt securities with equity participation). The Fund's favourable tax position will substantially enhance the after-tax return of these investments. Management believes that by effecting the changes proposed above, the Fund will be able to enhance Unitholder value while providing improved liquidity in the Fund's units. This news release contains forward-looking information. Actual results may vary. The risks, uncertainties and other factors that could influence actual results include those that are described in the Fund's public disclosure documents. TEL: (403) 705-7008 Raymond R. Pether, CEO FAX: (403) 705-7020 TEL: (416) 642-6007 Moyra E. MacKay, President & CEO FAX: (416) 642-6001