TORONTO, May 11 /CNW/ - Middlefield Group, on behalf of MINT Income Fund, announces that a special distribution will be paid to holders of record as at the close of business on May 23, 2007. This special distribution will be paid by way of additional Units, based on the net asset value per Unit on May 23, 2007. Subject to a final review of the Fund's taxable income for the period ended May 23, 2007, it is expected that the special distribution will be $1.30 per Unit.
This special distribution is the result of two factors. First, the Fund's strong performance during the 2007 year-to-date has been accompanied by significant realized capital gains. Specifically, the total return for MINT for the four months ended April 30, 2007, based on net asset value, was 13.6%, compared to the total return of 5.5% for the S&P/TSX Income Trust Index for the same period. Second, the Fund's Declaration of Trust requires that all taxable income be paid to Unitholders prior to the end of its taxation year. Since MINT will be merging with MATRIX Income Fund on May 24, 2007, its year end for tax purposes is deemed to be May 23, 2007 resulting in the requirement to make the special distribution at this time.
Immediately after the issuance of the additional Units, the outstanding Units of the Fund will be consolidated such that the number of Units will remain unchanged from the number outstanding immediately prior to the special distribution. A Unitholder will be required to include the amount of the special distribution in income, most of which will be in the form of capital gains, and this same amount also will be added to the adjusted cost base of the Units held by such Unitholder thereby reducing taxable capital gains that may be realized on future dispositions of the Units held by such Unitholder.
MINT trades on the Toronto Stock Exchange under the symbol MID.UN.
This press release contains forward-looking information which is based on historical information. Actual future results, including the amount of the special distribution, may differ materially from the special distribution currently expected to be paid. The risks, uncertainties and other factors that could influence actual results are described in the Fund's prospectus dated May 30, 2006 and other documents filed by the Fund with the Canadian securities regulatory authorities. The forward-looking information contained in this press release constitutes the Fund's current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund's estimate as of any date other than the date of this press release.