Citadel Fund Administrator Provides Additional Detail Regarding the Lack of
Independent Review of the Hostile Proposal
Stock Symbols: -------------- Citadel Diversified Investment Trust: CTD.UN, TSX Citadel Hytes Fund: CHF.UN, TSX Citadel Premium Income Fund: CPF.UN, TSX Citadel S-1 Income Trust Fund: SDL.UN, TSX Citadel SMaRT Fund: CRT.UN, TSX Citadel Stable S-1 Income Fund: CSR.UN, TSX Crown Hill Fund: MYT.UN, TSX Equal Weight Plus Fund: EQW.UN, TSX Series S-1 Income Fund: SRC.UN, TSX
National Instrument 81-107 Independent Review Committee for Investment Funds ("NI 81-107")
NI 81-107 requires a fund manager to refer conflicts of interest matters to the independent review committee of a fund (the "IRC") before taking any action in the matter. Where a unitholder vote is required for a conflict of interest matter, a manager is required to refer the matter to the IRC and to provide a summary of the IRC's decision to unitholders prior to the unitholder vote.
Blue Ribbon's Conflicts of Interest
If the Hostile Proposal is approved by unitholders of a Citadel fund, Blue Ribbon Fund Management Ltd. ("Blue Ribbon") would become the manager of that fund. The Hostile Proposal contemplates merging the funds that adopt the Hostile Proposal, resulting in significant fees for Blue Ribbon and
Blue Ribbon Has Not Submitted the Hostile Proposal to an Independent Review Committee
Blue Ribbon has indicated that it would appoint the Brompton Administration Limited ("Brompton") independent review committee as the IRC for the merged fund if the Hostile Proposal is approved. However, Blue Ribbon has not submitted the Hostile Proposal to this committee or obtained any independent review or scrutiny. Blue Ribbon has not disclosed any independent recommendation regarding the Hostile Proposal or indicated how it intends to comply with NI 81-107. Blue Ribbon has not disclosed any conflicts of interest or potential conflicts of interest of Blue Ribbon or Bloom or any policies or processes to address these conflicts of interest.
Citadel Funds are not aware of any Canadian securities regulatory authority granting relief from NI 81-107 in relation to the Hostile Proposal and has expressed concern regarding Blue Ribbon's compliance with NI 81-107 and lack of disclosure to staff of the Ontario Securities Commission.
Vote Your Blue Proxy AGAINST the Hostile Proposal -------------------------------------------------
Please take the time to vote FOR the Reorganization Resolutions and AGAINST the Hostile Resolutions. To make your vote count we need to receive your proxy by
Canadian Unitholders: Visit www.proxyvote.com and enter your 12 digit control number or call 1-800-474-7493 or fax your BLUE Voting Instruction Form to 905-507-7793 or toll free at 1-866-623-5305 in order to ensure that it is received before the deadline. U.S. Unitholders: Visit www.proxyvote.com and enter your 12 digit control number or call 1-800-454-8683.
If you have any questions on voting your proxy, please contact Kingsdale Shareholder Services Inc. toll-free 1-888-518-6828.
Remember every vote counts to protect your investment. Regardless of the number of units you own, please vote your proxy today.
Please visit www.CitadelMeeting.com for further information related to the Special Meeting resolutions. A link to this dedicated website will also be made available from the corporate website at www.citadelfunds.com.
Forward Looking Statements
This release contains forward-looking statements. These statements are based on certain factors and assumptions including, results of operations, performance and effective income tax rates. While the Funds and Citadel Fund Administrator consider these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Several factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to: the timing of and the ability to carry out the Reorganization, including the mergers and fluctuations in the net asset value. Forward-looking statements are given only as at the date of this release and the Funds and Citadel Fund Administrator disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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For further information: Media Contact: Janet Craig, Kingsdale Communications Inc., (416) 867-2315, [email protected]
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