October 18, 2006 - Triax CaRTS Trust (the "Trust") announces that the extraordinary resolution approved by unitholders on October 16, 2006 will be implemented on October 30, 2006, at which time, among other things, the name of the Trust will change to First Asset PowerGen Trust I. In addition to the name change, the Trust Agreement will also be amended to amend the investment objectives, strategy and restrictions of the Trust so that the Trust may invest on an actively managed basis in power generation and related energy infrastructure assets (the "Conversion"). Following the Conversion, the Trust's investment objectives will be to provide unitholders with monthly cash distributions together with the opportunity for capital appreciation. Initially the monthly distribution is anticipated to be $0.10 (approximately 6%/annum). It is anticipated that a significant portion of the distributions will be tax deferred returns of capital due to the availability of operating losses to offset income.
Other amendments to the Trust Agreement, all of which are more fully described in the Management Information Circular dated August 31, 2006, also include: (i) providing an additional redemption right at 100% of the Trust's net asset value per unit exercisable immediately following the implementation of the Conversion and thereafter changing the right to redeem units of the Trust from redemption at net asset value to redemption based on market value; (ii) permitting the Trustee to issue additional units in the Trustee's sole discretion; (iii) amending the termination provisions of the Trust; (iv) changing the fees payable by the Trust, including reducing the Manager's base fee to 1.00% and adding a performance based incentive fee; and (v) making certain amendments to the Trust Agreement to allow for more efficient management of the Trust and conform the Trust with current regulatory requirements and industry practices. With respect to the additional redemption right referred to above, Unitholders who wish to do so have the opportunity to redeem their units at 100% of the Trust's net asset value per unit (less the expenses incurred in connection with funding this redemption). Unitholders who wish to exercise this redemption right must do so by depositing their units for redemption through CDS on or before Friday, November 3, 2006. If exercised, units of the Trust will be redeemed for 100% of the net asset value per unit as at Friday, November 3, 2006 (less the expenses incurred in connection with funding this redemption), and the redemption proceeds will be paid to unitholders whose units were redeemed on or before November 10, 2006. The Trust's net asset value as at the close of business on Tuesday, October 17, 2006 was $21.10 per unit.
The deadline for participation by unitholders is November 3, 2006. Unitholders wishing to exercise this right are advised to contact their Investment Advisor well in advance of the November 3, 2006 deadline as each Investment Dealer's internal deadline may be earlier.
For further information, please call Paul Dinelle, Executive Vice-President, at 416-362-2929 or 1-800-407-0287.