TORONTO, February 13, 2018 – Temperance Capital Income Trust is pleased to announce that there will be an increase in the distribution for the preferred A unit of the trust sold prior to January 1, 2017 from 8.5% to 8.65%. This increase in distribution is in accordance with the Growth Interest Rate as described in the Offering Memorandum dated May 19, 2017.
The increase in distribution is as a result of improved performance in Temperance’s investment portfolio of 12 companies, particularly some excellent results from Floor Solutions and Wine Valley Siding. Overall for the fiscal year ended July 31, 2017, our investment partner, Succession Capital Inc. experienced organic growth in revenues of 2.8% and acquisition related growth of 11.2%
Commencing on March 31, 2018, the quarterly distribution on units sold prior to January 1, 2017 will increase from $0.2125 per preferred A unit to $0.2163. On an annual basis, this distribution represents an increase in annual return to 8.65% from the previous rate of 8.5%.
NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.
About Temperance Investment Corp.
Temperance makes preferred royalty investments of between $5 and $20 million in small and medium sized companies, which have a history of stable and sustainable free cash flow. The Temperance structure of investment is well suited to business owners who do not wish to compromise their equity ownership and the operational control of their business.
This press release shall not constitute a public offering to sell units of the Trust (Units) or the solicitation of an offer to buy Units, nor will there be any sale of Units in any state or jurisdiction where such offer, solicitation or sale is not permitted. This press release is not intended to serve as the basis for any investment decision. The Units have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the Units in Canada will be made on a basis that is exempt from the prospectus requirement of such securities laws. The Units were offered on a private placement basis through an offering memorandum and to those investors in jurisdictions of Canada who meet certain eligibility or minimum purchase requirements. Subscribers for Units must make a representation that the subscriber meets the conditions of the applicable prospectus exemption in purchasing Units pursuant to this offering and is thus entitled under such prospectus exemption to purchase such securities without the benefit of a prospectus qualified under applicable securities laws. The Units have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act), or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. The Units were offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and to persons other than U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. This news release contains certain statements that may be deemed “forward-looking statements” under applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Temperance believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Temperance’s management on the date the statements are made. Temperance does not undertake, and specifically disclaims, any intention or obligation to update these forward-looking statements, except as required by law, in the event that management’s beliefs, estimates or opinions, or other factors, should change.