VANCOUVER, Aug. 29 /CNW/ - Pursuant to the early warning requirements of applicable Canadian securities laws, Distressed Securities & Special Situations-1 ("DSSS"), a Delaware statutory trust managed by FrontFour Capital Group LLC ("FrontFour Capital"), a Delaware limited liability company, announces that it acquired today beneficial ownership of 2,415,553 units ("Units") of IAT Air Cargo Facilities Income Fund (TSX: ACF.UN) (the "Fund"), comprising approximately 34.7% of the Units outstanding. Following this acquisition DSSS holds 2,686,579 Units, representing approximately 38.56% of the Units outstanding, and FrontFour Capital exercises control over 3,098,653 Units, representing approximately 44.48% of the Units outstanding. The 3,098,653 Units include the 2,686,579 Units beneficially owned by DSSS, as well as 412,074 Units owned by FrontFour Holdings Inc. ("FrontFour Holdings"), a corporation incorporated under the Business Corporations Act (British Columbia). FrontFour Capital is the investment manager of DSSS, and is the sole voting shareholder of FrontFour Holdings. Accordingly, FrontFour Capital is deemed to exercise control over the Units owned by FrontFour Holdings and DSSS. FrontFour Capital and FrontFour Holdings are deemed to be joint actors with DSSS for Canadian securities laws purposes.
The Units acquired today by DSSS were acquired in a single private transaction pursuant to a unit purchase agreement ("Agreement") with FrontFour Holdings for a purchase price of Cdn.$7.40 per Unit. The Agreement contains standard representations and warranties.
FrontFour Capital has acquired control over the Units owned by FrontFour Holdings and DSSS for investment purposes. FrontFour Capital intends to conduct a detailed review of the Fund and International Aviation Terminals Inc., a company wholly owned by the Fund, and their respective operations, assets, corporate structure, capitalization, policies, management and personnel to determine what changes, if any, would be desirable in light of such review and the circumstances which then exist. Such changes may result in a revision of the distribution policy of the Fund, the raising of additional capital to pursue higher return growth opportunities for the Fund, and may also include effecting changes in management, including the number and identity of trustees of the Fund. The specific changes, if any, to be made in respect of the Fund or International Aviation Terminals Inc. have not been, and will not be, determined until FrontFour Capital completes its review of such entities.
FrontFour Capital, DSSS and FrontFour Holdings may in the future take such actions in respect of their holdings of Units of the Fund as they deem appropriate in light of circumstances then existing, including the acquisition or disposition of Units. FrontFour Capital, DSSS and FrontFour Holdings may from time to time acquire additional Units in the open market or in privately negotiated transactions, subject to availability of Units at prices deemed favourable, the Fund's business or financial condition and other factors and conditions FrontFour Capital, DSSS and FrontFour Holdings deem appropriate. In addition, FrontFour Capital, DSSS and FrontFour Holdings may formulate other purposes, plans or proposals regarding the Units to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors.
About FrontFour Capital
FrontFour Capital Group LLC is a privately owned hedge fund management company based in Stamford, Connecticut. DSSS is a Delaware statutory trust and is fully managed by FrontFour Capital Group LLC. DSSS' address is Two Stamford Landing, 68 Southfield Avenue, Suite 290, Stamford, CT 06902, United States.
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For further information: or for a copy of the early warning report filed on SEDAR by DSSS, please contact Zachary George at 1-877-744-1272
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