TORONTO, ONTARIO--(Marketwired - Sept. 18, 2015) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES.
Faircourt Asset Management Inc. (the "Manager"), as manager of Faircourt Gold Income Corp. (TSX:FGX) (the "Fund"), announces today that the monthly distribution on the shares will be reduced from $0.048 per month per share ($0.576 per annum per share) to $0.024 per month per share ($0.288 per annum per share) on a going forward basis.
The Fund's distribution, funded primarily by option writing, has helped the Fund outperform the S&P/TSX Global Gold Index since the Fund's inception. However, with the prolonged and very challenging environment experienced by gold companies since 2012, the Fund has seen its Net Asset Value (NAV) decline. The Manager believes that the gold market may be approaching a bottom, and managing the distribution level represents an opportunity to assist in growing the NAV of the Fund. Specifically, in a rising price environment a lower distribution will reduce the potential for capping the Fund's returns through reduced option writing on securities currently held in the Fund's portfolio. As a result, the Manager determined that it is in the best interest of the Fund to reduce the monthly distribution from $0.048 per share per month to $0.024 per share per month, representing a current yield of approximately 11%.
The September distribution payable on the shares of the Fund will be paid as follows:
| Faircourt Funds |
Trading
Symbol |
Distribution
Amount
(per share) |
Ex-Dividend
Date |
Record
Date |
Payable
Date |
| Faircourt Gold Income Corp. |
FGX |
$0.024 |
September 28, 2015 |
September 30, 2015 |
October 15, 2015 |
Faircourt Asset Management Inc. is the portfolio manager and investment fund manager for Faircourt Gold Income Corp.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.