Contrans scraps distribution reinvestment

WOODSTOCK, Ont. – Contrans Income Fund, says its board has decided to scrap the company’s distribution reinvestment plan, effective June.

"With recent economic turmoil and the resulting trading price of the trust units substantially below the exercise prices of the outstanding options, the purposes of the unit option plan are not being met," said Stan Dunford, chairman and CEO of the company.

At the same time Contrans also says that it has completed a voluntary unit option cancellation program offered to all holders of unit options resulting in the cancellation of all Contrans’ options.

"This flexibility is critical for us, as options are an important element for attracting and retaining valued employees, and for keeping their interests aligned with those of our unitholders," Dunford says.

Contrans is one of the largest truckload carriers in Canada. It is also one of the few trucking income trusts that has remained that way.

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