The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Freehold Royalties Ltd. Declares Dividend for March 15, 2012

Monday, February 13, 2012

Freehold Royalties Ltd. Declares Dividend for March 15, 201218:17 EST Monday, February 13, 2012CALGARY, ALBERTA--(Marketwire - Feb. 13, 2012) - Freehold Royalties Ltd. (TSX:FRU) (Freehold) announces that its Board of Directors has declared a dividend of Cdn. $0.14 per common share to be paid on March 15, 2012 to shareholders of record on February 29, 2012. Including the March 15, 2012 payment, the twelve-month trailing cash dividends total Cdn. $1.68 per common share. As previously announced, Freehold has entered into an agreement with a syndicate of underwriters led by CIBC World Markets Inc. to sell, on a bought deal basis, 3,000,000 common shares of the Corporation at a price of $20.50 per common share for gross proceeds of approximately $60 million. As closing of the financing is expected to occur on February 29, 2012, purchasers of common shares pursuant to the financing, provided such purchasers continue to hold such common shares at the close of business on February 29, 2012, will be entitled to receive the dividend payable on March 15, 2012. These dividends are designated as "eligible dividends" for Canadian income tax purposes.Freehold's primary focus is on acquiring and managing oil and gas royalties. The majority of production comes from royalty assets (mineral title and gross overriding royalties). Freehold's common shares trade on the Toronto Stock Exchange in Canada under the symbol FRU. Forward-Looking Statements This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the financing and the entitlement of purchasers of common shares pursuant to the financing to receive the dividend payable on March 15, 2012. Although Freehold believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Freehold can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the financing could be delayed if Freehold is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The financing will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the financing will not be completed within the anticipated time or at all. If the financing does not close on or prior to February 29, 2012, purchasers of common shares pursuant to the financing will not be entitled to receive the dividend payable on March 15, 2012 and will only begin to receive dividends, provided such purchasers continue to hold common shares, when and if the next dividend is declared by the Board of Directors of Freehold. The forward looking statements contained in this press release are made as of the date hereof and Freehold undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.FOR FURTHER INFORMATION PLEASE CONTACT: Karen TaylorFreehold Royalties Ltd.Manager, Investor Relations and Corporate Secretary403.221.0891 or Toll Free: 1.888.257.1873403.221.0888 (FAX)ktaylor@rife.comwww.freeholdroyalties.com