MISSISSAUGA, ON, Aug. 12 /CNW/ - CML HealthCare Income Fund (TSX: CLC.UN) (the "Fund" or "CML") today provides further information on the previously announced intention to convert (the "Conversion") from an income trust structure to a corporation (the "Corporation"). The Board of Trustees has approved an initial post-conversion dividend anticipated to be $0.0629 per share on a monthly basis, or $0.7548 per share on an annualized basis effective January 1, 2011. This dividend policy maintains the current distribution level adjusted to take into account the anticipated level of income taxes that the Corporation will be subject to commencing in 2011. As previously announced, the Fund intends to maintain its current monthly distribution level of $0.08927 per unit for the remainder of 2010...
The distribution cut is about 30% from the current level and based on the market reaction(up 7 % yesterday and 5 % today) the cut is much lower than expected.
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