Energy Income Fund T.ENI.UN

Warrant offering destroyed the fund

[Nawaralsaadi]

This abusive warrant offering proposed by management has totally massacred the value of ENI.UN units, the NAV will dip to $3.84 from $4.39 in August 15^th, and if we were to trade at the usual 16% to 18% discount the units will trade at $3.1 to $3.2. This warrant offering has been nothing but an absolute disaster due to its high dilutive nature with the warrants being priced at 23% discount to NAV and the massive offering fees distributed to all the participants at the food chain.

The only winner here is management, the offering would give them additional assets to manage and thus collect more fees; unit holders must voice their concerns to the management and demand steps be taken to close the trading discount to net asset value rather having the management take steps to widen the discount!, getting rid of this offering would be a first step.

It is worth noting earlier this year the Canadian securities regulator has proposed rules to block such warrant offerings from taking place, this warrant offering is a complete valuation of the direction the regulation is moving towards and probably an attempt to raise as much money as possible before the warrants window is closed by the new law.

This is simply disgusting.  I will keep watching the situation and may take additional action against the management if they continue on this path

Regards,
Nawar