CanWel Building Materials Income Fund (TSX:CWX.UN) plans to buy for cancellation up to 1.7 million units, reducing its number of shares issued and outstanding by 10%.
The purchases can start from June 11, 2007 to June 10, 2008. All purchases at the time of acquisition will be at the prevailing market price through the facilities of the TSX.
CanWel said it believes the market price of its trust units may be undervalued during the normal course issuer bid because of the company's outlook for its future prospects.
CanWel's unit price has stayed around the $4 range, off its unit price of $4.45 prior to federal Finance Minister Jim Flaherty's distribution tax announcement last October.
The income trust's units rose to $4.40 as of 10:30 a.m. PST.
CanWel's unit price range during the past week: between $4.07 and $4.14; 52-week high: $5.10; 52-week low: $3.06.