TORONTO, ONTARIO–(Marketwire – Jan. 4, 2011) – EnerCare Inc. ("EnerCare") (TSX:ECI) and EnerCare Solutions Inc. ("EnerCare Solutions") today announced that, effective January 1, 2011, The Consumers' Waterheater Income Fund (the "Fund") has completed its conversion from an income trust to a dividend-paying corporation (the "Conversion") in accordance with a final order issued by the Ontario Superior Court of Justice on November 29, 2010. The common shares and convertible debentures of EnerCare will commence trading on the Toronto Stock Exchange on January 5, 2011 under trading symbols "ECI" and "ECI.DB", respectively. The Fund's trust units and convertible debentures will be delisted by the end of the day on January 4, 2011.
It is expected that EnerCare will maintain the Fund's previous distribution level of $0.648 per share annually as monthly dividends of $0.054 per share, with the first dividend payable to shareholders of record on January 31, 2011. The dividend level is intended to allow for internally generated cash flow to support organic growth, maintain a strong balance sheet and provide sustainable monthly dividends to shareholders. The amount of any dividends payable by EnerCare will be at the discretion of it s board of directors and will be evaluated periodically and may be revised depending on, among other factors, EnerCare's earnings, the financial requirements of EnerCare's operations, the satisfaction of solvency tests imposed by corporate law for the declaration and payment of dividends and other conditions that may exist from time to time.
Pursuant to the Conversion, effective January 1, 2011:
Each unit of the Fund was exchanged for one common share of EnerCare (an "EnerCare Share");
EnerCare assumed the Fund's convertible debentures, which became convertible into EnerCare Shares on the same terms as they were convertible into Fund units (being a current conversion price of $6.48 per EnerCare Share);
The Consumers' Waterheater Operating Trust (the "Trust") was dissolved and EnerCare Solutions assumed the publicly-held senior indebtedness of the Trust; and
The Fund was dissolved.
EnerCare and EnerCare Solutions own a portfolio of approximately 1.3 million water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns Stratacon Inc. and EnerCare Connections Inc., leading "smart" sub-metering companies, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.
Additional information regarding EnerCare and EnerCare Solutions is available on SEDAR at www.sedar.com.
Certain statements in this news release are forward-looking sta tements, which reflect management's expectation regarding EnerCare's and EnerCare Solutions's growth, results of operations, performance, business prospects and opportunities. Such forward-looking information reflects management's current beliefs and is based on information available to them and/or assumptions management believes are reasonable. Many factors could cause results to differ materially from the results discussed in the forward-looking information. These factors include risks associated with the failure to realize the anticipated benefits of the Conversion. Although the forward-looking information is based on what management believes to be reasonable assumptions, EnerCare and EnerCare Solutions cannot assure investors that actual results will be consistent with this forward-looking information. Except as required by applicable securities laws, neither EnerCare nor EnerCare Solutions intend and do not assume any obligation to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.
For further information: EnerCare Inc.
EnerCare Solutions Inc.
1.905.695.7793 or 1.800.781.2943