Press release from CNW Group
CML HEALTHCARE INCOME FUND DECLARES DECEMBER DISTRIBUTION
Monday, December 06, 2010
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
Toronto Stock Exchange Symbol: CLC.UN
MISSISSAUGA, ON, Dec. 6 /CNW/ - CML HealthCare Income Fund (TSX: CLC.UN) (the "Fund") today announced its December distribution of $0.08927 per unit to unitholders of record as at the close of business on December 15, 2010, payable on December 22, 2010.
As announced in the third quarter financial results news release dated November 11, 2010, with the approval of the arrangement to convert the Fund from an income trust structure to a corporate structure (the "Arrangement"), distributions for the months of November 2010 and December 2010 will both be paid in December 2010.
At the special meeting of unitholders held on December 1, 2010, unitholders overwhelmingly approved the Arrangement and the final order of the Ontario Superior Court of Justice to approve the Arrangement was received today. The Board of Trustees subsequently approved the record and payment date for the December 2010 distribution of December 15, 2010 and December 22, 2010 respectively.
The December 2010 distribution will be the last distribution paid to unitholders by the Fund. Starting in January 2011, cash will be distributed to shareholders of CML HealthCare Inc. (the "Company") by way of dividends on a monthly basis, anticipated to be $0.0629 per share. Any decision to declare and pay dividends will be made by the board of directors of CML HealthCare Inc., in its sole and absolute discretion, upon consideration of the Company's earnings, financial and operational requirements, and such other factors and conditions it deems advisable at such future time. The record date and payment date for the January 2011 dividend will be declared in January 2011 with the payment date anticipated to be in February 2011.
About CML HealthCare Income Fund
CML HealthCare Income Fund is an unincorporated open-ended trust that owns CML HealthCare Inc., one of North America's largest healthcare services businesses. Based in Mississauga, Ontario, CML HealthCare Inc. is a leading provider of laboratory testing services in Ontario, the largest provider of medical imaging services in Canada and is a leading provider of medical imaging services in the U.S. Northeast. CML HealthCare Income Fund is publicly traded on the Toronto Stock Exchange under the symbol "CLC.UN" and has approximately 89.8 million units outstanding. To reach CML HealthCare Income Fund via the worldwide web log on to www.cmlhealthcare.com.
Caution concerning forward-looking statements
This document includes forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and other provincial securities law in Canada. These forward-looking statements include, among others, statements with respect to our objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on these statements, as a number of important factors, many of which are beyond our control, could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: failure to receive approval of the conversion of the Fund to a corporation from unitholders or any required regulatory, judicial, stock exchange and third party approvals in connection with the plan of arrangement; a reduction of funds from operations; general economic conditions; dependence on government-based revenues in Canada; pending and proposed legislative or regulatory developments in Canada including the impact of changes in laws, regulations and the enforcement thereof; intensifying competition, resulting from established competitors and new entrants in the businesses in which we operate; our ability to complete strategic acquisitions and to integrate our acquisitions successfully; insurance coverage of sufficient scope to satisfy any liability claims; operational and infrastructure risks including possible equipment failure and performance of information technology systems; fluctuations in total patient referrals; technological change and obsolescence; loss of services of key senior management personnel; privacy laws; dependence on our operating subsidiary to pay its interest obligations to us; unpredictability and volatility of the unit price; nature of the Units; fluctuations in cash distributions and capital investment; structural subordination of the units; leverage and restrictive covenants; timing and amount of capital expenditures; restrictions on potential growth; tax-related risks; redemption right; dilution; future sales of units; distribution of CML Shares and Notes on termination of the Fund; and limited unitholder liability. Additional factors related to the business operations in the U.S. imaging market include, but are not limited to: potential termination of the management services agreement between our subsidiary, American Radiology Services and American Radiology Associates, P.A., or other arrangements with contracted radiology practices; fluctuations in total patient referrals; changes in third-party reimbursement rates or methodology; increased pressure to control healthcare costs; increased competition; technological change; exposure to professional malpractice liability; potential termination of relationship with Johns Hopkins; currency fluctuations; ability to grow business in the United States; U.S. income tax matters; different regulatory environment characterized by extensive regulation; penalties arising from failure to comply with all regulations; federal and state fraud and abuse laws; reversal of Board of Physician's decisions or legislative change; loss of licensing, certification or accreditation; Certificate of Need regulations; privacy legislation; legislative change affecting prices that physicians or suppliers can charge; avoidance of fee-splitting; environmental health and safety laws; and the uncertainty of the U.S. regulatory environment.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When reviewing our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found in the "Risk Factors" section, under "Business Risks" and elsewhere in our Management's Discussion and Analysis of Operating Results and Financial Position for the year ended December 31, 2009 and elsewhere in our filings with Canadian securities regulators. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made.
For further information:
|Alice Dunning||Tom Weber|
|Director, Corporate Communications||Chief Financial Officer|
|CML HealthCare Income Fund||CML HealthCare Income Fund|
|(905) 565-0043 ext.3472||(905) 565-0043 ext. 3204|
|(905) 565-2844 fax||(905) 565-2844 fax|