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TORONTO, ONTARIO--(Marketwired - Feb 26, 2016) - Dominion Citrus Income Fund (TSX:DOM.UN) (the "Fund") wishes to provide an update on the status of its negotiations to sell to Paul Scarafile, interim President of Dominion Citrus Limited ("DCL"), the Fund's assets. As previously announced (see Press Release dated January 12, 2016), the Fund had accepted an unsolicited, non-binding letter of intent from Mr. Scarafile to purchase all the assets of the Fund, including the common shares of DCL, the Participating Notes issued by DCL and held by the Fund and the option held by the Fund to acquire all the shares of Dominion Farm Produce Limited, (the "Proposed Transaction") for an aggregate purchase price of $10,805,070.
The Proposed Transaction is subject to, among other conditions, the parties entering into a definitive agreement (the "Agreement"). Negotiations for the Agreement continue. The parties have several times extended the deadline for completion of the Agreement by a week at a time. The current deadline is March 4, 2016. Upon either completion of the Agreement or termination of negotiations without settling the Agreement, the Fund will issue a press release. Assuming satisfactory completion of the Agreement and of due diligence, the Board of Trustees would call a meeting of holders of units of the Fund for the purpose of approving the Proposed Transaction.
The Fund is a publicly traded, unincorporated, open-ended limited purpose income trust. On January 1, 2006, all of the common shares of DCL were exchanged for trust units of the Fund. The trust units are listed on the TSX under the symbol DOM.UN. The Fund's website may be accessed at www.dominioncitrus.com.
DCL is a diversified food company supplying fresh produce to a wide variety of customers in retail, foodservice and food distribution businesses. DCL provides procurement, processing, repacking, sorting, grading, warehousing and distribution services to its major domestic markets being Ontario and Québec. Dominion also supplies products to customers in the United States.
Cautionary Statement Regarding Forward Looking Information and Statements
Certain statements contained in this press release contain "forward-looking information" pursuant to Canadian securities laws (" forward-looking statements "). Forward-looking statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential" and "capable" and similar expressions are intended to identify forward-looking statements. The forward- looking statements in this press release include statements about the Proposed Transaction and the meeting of Unitholders. Among other things, the Proposed Transaction is subject to completion of the Agreement and of satisfactory due diligence and to approval of the Unitholders. Any forward-looking statements speak only as of the date of this press release, and the Fund and DCL assume no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date of this press release except as required by applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Dominion Citrus Income Fund
Peter McLaughlin, Chairman
Board of Trustees