TRADING SYMBOL: Toronto Stock Exchange - GRO.UN
VANCOUVER, Sept. 15 /CNW/ - Sun Gro Horticulture Income Fund (the Fund) today reported that it will suspend monthly distributions to unitholders two months earlier than announced on August 13, 2008. The suspension will now be effective after the August 2008 distribution paid today.
"In light of the significant negative impact of continued poor peat harvest conditions on our financial performance, the Board determined that it would be prudent to discontinue distributions earlier than planned and apply available funds for internal purposes, primarily debt reduction," said Mitch Weaver, President and CEO of the Fund's wholly-owned subsidiary, Sun Gro Horticulture Canada Ltd. (Sun Gro), and a Trustee of the Fund.
Weaver added that Sun Gro is currently working to optimize its harvest over the balance of the harvest season.
Forward-Looking Statements
This news release contains forward-looking statements. These statements relate to future events or future performance and reflect Sun Gro's expectations regarding its growth, results of operations, performance, business prospects, opportunities or industry performance or trends. These forward-looking statements reflect management's current internal projections, expectations or beliefs and are based on information currently available. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "predict", "potential", "continue" or the negative of these terms or other comparable terminology. A number of factors could cause actual events or results to differ materially from those discussed in the forward-looking statements. Important factors that could cause actual results to differ materially from Sun Gro's expectations include, among other things, fluctuations in currency exchange rates and interest rates, changes in tax laws, the impact of adverse weather conditions on harvesting operations, an increase in freight rates, failure to successfully implement Sun Gro's strategies of adding mix products and targeting the professional grower market, failure of acquisitions to be accretive to unitholders or to be accretive within Sun Gro's anticipated timeframes, inability to refinance acquisition debt, the impact of an increase in fuel costs, reduced consumer demand from natural disasters and economic factors and competitive activity. Readers should specifically consider these factors, including the risks and uncertainties described in the MD&A. Although Sun Gro believes that the forward-looking statements contained in the MD&A are based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Forward-looking statements are made as of the date of the MD&A and Sun Gro assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Income Fund Profile
Sun Gro Horticulture Income Fund was launched with the completion of an Initial Public Offering on March 27, 2002. Units of the Fund are listed for trading on the Toronto Stock Exchange. There are 22,284,681 units of the Fund issued and outstanding. The Fund is dependent on Sun Gro's operations, with monthly distributions to its unitholders based entirely on Sun Gro's performance.
Company Profile
Sun Gro was founded in 1929 in Vancouver, BC and has grown to become North America's largest producer of sphagnum peat, and the largest distributor of peat moss, and peat and bark-based growing media to professional plant growers in the US and Canada. Sun Gro sells its professional products primarily to greenhouse, nursery and specialty crop growers, as well as to golf course developers and landscapers. Sun Gro also sells peat moss and peat-based growing mixes to retail customers, either by way of private label partnerships or under its own brand names. Approximately 80% of the company's sales volume goes to the US.
Sun Gro currently has approximately 65,000 acres of peat bogs under lease. The company's North America-wide production network now comprises 12 Canadian peat and peat-mixing plants and 13 US peat and bark-mixing plants.
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