CRC ROYALTY CORPORATION ANNOUNCES REDUCTION IN DIVIDENDS
July 28, 2015
We have just been informed by Caledonian Royalty Corp. (“Caledonian”), the company in which CRC Royalty Corporation (“CRC”) holds shares and from which CRC receives 100% of its income, that it has cut its pay-out by 50%. As a result, CRC must correspondingly reduce distributions by 50%.
Caledonian has informed us that they have cut their pay-out due to the current low commodity prices for Oil and Natural Gas and they are now paying out an amount that they can sustain given their current production and cash flow.
Therefore, the board of directors of CRC has approved a dividend of $0.01 per common share, payable on July 31, 2015, to shareholders of record on July 23, 2015. This dividend, for tax purposes, is classified as an “ineligible dividend” which results in a lower gross dividend amount and a related lower amount of federal dividend tax credit associated with the dividend payment.
We will update you further should Caledonian provide any further information or update regarding their affairs.
Should you wish to discuss this or have any questions please feel free to contact myself at your convenience at firstname.lastname@example.org or 604-630-7020.
ON BEHALF OF THE BOARD OF DIRECTORS
Hugh Cartwright, Chairman
CRC Royalty Corporation