Davis + Henderson Income Fund Completes Corporate Conversion
TORONTO, Jan. 4, 2011 (Canada NewsWire via COMTEX) — Davis + Henderson Corporation (TSX: DH) (“Davis + Henderson” or the “Corporation”) today announced that Davis + Henderson Income Fund (the “Fund”) has completed the previously announced plan of arrangement (the “Arrangement”) pursuant to which the Fund’s income trust structure has been converted into a dividend paying publicly traded corporation named Davis + Henderson Corporation. On June 17, 2010 unitholders of the Fund approved the Arrangement by a vote of 99.8%. Under the Arrangement, unitholders of the Fund received, for each unit of the Fund held, one common share of the Corporation. Davis + Henderson now directly and indirectly owns and operates the businesses of the Fund and its subsidiaries and the existing trustees and management of the Fund are the Corporation’s board and management. Common shares of Davis + Henderson Corporation will commence trading on the Toronto Stock Exchange on January 4, 2011 under the symbol DH.
The Corporation intends to pay quarterly dividends at an initial annualized rate of $1.20 per share.
The Corporation also announced the completion of an internal corporate reorganization designed to better align its operating business and to simplify its corporate structure. Under the new structure, the businesses of Davis + Henderson, Filogix, Cyence and Resolve were combined into a single entity. The Corporation’s programs to the chequing account, loan service solutions, registration services and lending technology solutions will all be provided by the same entity, D+H Limited Partnership.
ABOUT DAVIS + HENDERSON
Founded in 1875, Davis + Henderson provides innovative programs, technology products, and technology based business services to customers in the financial services industry who offer deposit, lending, insurance and wealth management products to consumers and businesses. Davis + Henderson is listed on the Toronto Stock Exchange under the symbol DH. Further information can be found in the disclosure documents filed by Davis + Henderson with the securities regulatory authorities, available at www.sedar.com.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Statements concerning Davis + Henderson’s objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the intended dividend policy of the Corporation are forward-looking statements. The words “believe”, “expect”, “anticipate”, “estimate”, “intend”, “may”, “will”, “would” and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions, including the following specific assumptions: the ability of Davis + Henderson to meet its revenue targets; general industry and economic conditions; changes in Davis + Henderson’s relationship with its customers and suppliers; pricing pressures and other competitive factors. Davis + Henderson has also made certain macroeconomic and general industry assumptions in the preparation of such forward-looking statements. While Davis + Henderson considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the business, or developments in Davis + Henderson’s industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements.
Risks related to forward-looking statements include, among other things, challenges presented by declines in the use of cheques by consumers; the Corporation’s dependence on a limited number of large financial institution customers and dependence on their acceptance of new programs; stability and growth in the real estate, mortgage and lending markets; as well as general market conditions, including economic and interest rate dynamics. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions, and Davis + Henderson does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change except as required by applicable securities laws.
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SOURCE: Davis + Henderson Income Fund
Brian Kyle, Executive Vice President and Chief Financial Officer
Davis + Henderson, Limited Partnership,