Business
Sun Gro Horticulture Income Fund Completes Important Step in Conversion Process
Sun Gro Horticulture Income Fund Completes Important Step in Conversion Process
About this update from Coloured Ties Capital Inc
[{"type":"text","content":"\n\n\n\nVANCOUVER, Apr. 23, 2010 (Canada NewsWire Group) -- /CNW/ -- Sun Gro Horticulture Income Fund (the Fund) today announced that the board of trustees of the Fund and the board of directors of the Fund's wholly owned subsidiary, Sun Gro Horticulture Canada Ltd. (Sun Gro or the company), have formally approved the Fund's conversion to a corporate structure by way of a statutory plan of Arrangement (the Arrangement) under section 192 of the Canadian Business Corporations Act and recommended the Arrangement for unitholder approval at the annual and special meeting of unitholders to be held on May 27, 2010. If approved, the Arrangement would result in the reorganization of the Fund's trust structure into a publicly listed corporation (New Sun Gro) which will continue to carry on, directly and indirectly, the business carried on by Sun Gro and its subsidiaries. Unitholders would receive, for each unit held, one common share of New Sun Gro on the effective date of the Arrangement. Details of the proposed conversion plan were first announced on March 17, 2010. A management information circular containing additional details about the Arrangement will be mailed to voting unitholders by the end of April 2010.In conjunction with their review of the Arrangement, the board of trustees and the board of directors retained Evans & Evans, Inc. (Evans & Evans) to act as financial advisor. Evans and Evans is a Canadian boutique Investment Banking firm with offices and affiliates in Canada, the U.S. and Asia. Evans & Evans has provided the board of trustees and the board of directors with an opinion that, as at the date thereof and subject to the particular assumptions and considerations summarized therein, the terms of the Arrangement are fair, from a financial point of view, to unitholders of the Fund. The full text of the Evans & Evans fairness opinion will be included with the management information circular.After duly considering the financial aspects and other considerations relating to the Arrangement, including the terms of the Arrangement, the advice of legal counsel, the fairness opinion of Evans & Evans, and the duties of the board of trustees and the board of directors, the board of trustees and the board of directors have approved the Arrangement, and have concluded that the Arrangement is fair, from a financial point of view, to ...