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Specialty Foods Group Income Fund Announces Distribution and Provides Update on Reserve Amount

TORONTO , Jan. 20, 2020 /CNW/ - Specialty Foods Group Income Fund (the "Fund") announced today that it will be making a distribution to the unitholders of the Fund in the amount of Cdn. $35 million , representing a distribution per unit of approximately Cdn. $1.74 . This amount includes, in large part, the net cash proceeds received by the Fund from the previously announced sale of Specialty Foods Group, LLC ("SFG"). It is anticipated that the distribution will be made by the Fund through the facilities of CDS in the next couple weeks.

The Fund has determined to make this distribution as it has recently received awaited tax clearance certificates. The Fund will continue to maintain a reserve amount to cover Fund expenses and liabilities, which amount is held in trust and, net of expenses including income taxes, is available for future distribution to Fund unitholders. After giving effect to such distribution, approximately Cdn. $2.5 million will be held in trust by the Fund. In addition, it is possible that the Fund will receive up to approximately US$0.9 million from escrowed funds at different time intervals throughout 2020 and thereafter from the sale of SFG to the extent such funds are not required to satisfy closing adjustments, warranty claims and other indemnity amounts.

It is intended that the amount held by the Fund in trust, along with any future amounts received by the Fund, will be distributed by the Fund to unitholders once the Fund has addressed its contingent and other liabilities. In light of those liabilities, the Fund has received advice that it is not prudent to make a final distribution of all escrowed funds at this time.

The Fund will continue to provide details to unitholders from time to time as to the reserve amount available for distribution to Fund unitholders as well as the anticipated timing of such final modest distributions, if any. 

FORWARD-LOOKING INFORMATION

This press release contains forward-looking information within the meaning of applicable securities laws that reflects the current expectations of the trustee of the Fund. The words "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "project", "continue", "predict", "potential", or the negative of these terms or other similar expressions have been used to identify such forward-looking information.

Forward-looking information is based upon a number of assumptions and is subject to a number of known and unknown risks and uncertainties, many of which are beyond the Fund's control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Certain factor(s) could cause actual results to differ materially from those discussed in the forward looking information.

This forward-looking information represents the trustee's understanding as of the date of this press release. While subsequent events and developments may cause such understanding to change, the Fund does not intend to update this forward-looking information, except as required by applicable securities laws.

SOURCE Specialty Foods Group Income Fund


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