Shareholders of Vancouver's Rainmaker Income Fund (TSX:RNK.UN) have approved management's decision to convert the business from an income trust to a corporation.
The move is designed to help the company expand its business without being hindered by new income trust rules that came into force last year.
Federal income Tax Act amendments will allow unit-holders of publicly traded income trusts to exchange their units for shares in a new publicly traded corporation on a tax-deferred basis, dependent on certain conditions.
The conversion is expected to close August 1, subject to customary conditions including regulatory and court approval.
Rainmaker's unit price range during the past week: between $2.15 and $2.45; 52-week high: $2.98; 52-week low: $2.02.