TORONTO, ONTARIO--(Marketwire - April 18, 2012) - EnerCare Inc. (TSX:ECI) ("EnerCare") today announced that leading proxy advisory services firm Institutional Shareholder Services (ISS) issued a report recommending that shareholders of EnerCare vote in favour of management's director nominees and against the resolution proposed by Octavian Advisors, LP ("Octavian") to enlarge the board and fill the additional seats with its own nominees.
The April 16, 2012 ISS report states that "EnerCare's returns are far from the debacle the dissident asserts. After accounting for dividends, EnerCare's total shareholder returns have been in line with-and often outperformed-the broader market indices over the last several years."
Jim Pantelidis, Chair of the EnerCare Board of Directors, said, "We are very pleased that a thorough review of the facts by ISS supports the Board's recommendations to shareholders. We look forward to continuing to work on behalf of all our shareholders."
The ISS report concludes that "the dissident has not proved that the board has acted imprudently, or that change at the board level is needed….A vote on the management card FOR the management nominees is warranted; votes for the dissident's proposals to enlarge the board and fill the additional seats with its nominees, by contrast, are not warranted."
In order to get its message out to shareholders, EnerCare has decided to invite members of the Investment Industry Regulatory Organization of Canada to solicit proxies from beneficial owners of EnerCare's shares, as set out in its management information circular dated March 23, 201 2. If Octavian's proposed resolution is defeated at EnerCare's annual and special meeting scheduled for April 30, 2012, EnerCare will pay a solicitation fee of $0.05 for each share voted against Octavian's proposed resolution, subject to a maximum fee of $1,500 and a minimum fee of $100 in respect of any single beneficial owner of shares (provided that any single beneficial owner votes a minimum of 1,000 shares against Octavian's proposed resolution). The costs of the solicitation will be borne by EnerCare.
PROTECT YOUR DIVIDEND - VOTE YOUR BLUE PROXY TODAY
Shareholders should call Kingsdale Shareholder Services toll-free at 1-888-518-6813 or call collect at 416-867-2272 for assistance in voting the BLUE proxy.
For more information, please go to: www.ProtectEnerCare.com.
About EnerCare Inc.
EnerCare owns a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.
For more information about the upcoming April 30 annual and special meeting of shareholders, please visit www.protectenercare.com. You can also find more information about EnerCare on SEDAR at www.sedar.com, on our investor website at www.enercareinc.com or on our rentals and sub-metering business website at www.enercare.ca.
This news release contains certain forward-looking statements that involve various ri sks and uncertainties. The forward-looking information in this news release includes statements that reflect management's expectation regarding EnerCare's growth, results of operations, performance, business prospects and opportunities. Such forward-looking information reflects management's current beliefs and is based on information available to them and/or assumptions management believes are reasonable. Many factors could cause results to differ materially from the results discussed in the forward-looking information. Although the forward-looking information is based on what management believes to be reasonable assumptions, EnerCare cannot assure investors that actual results will be consistent with this forward-looking information. All forward-looking information in this news release is made as of the date hereof. Except as required by applicable securities laws, EnerCare does not intend and does not assume any obligations to update or revise the forward-looking information, whether as a result of new information, future events or otherwise. A thorough discussion in respect of the material risks relating to the business and structure of EnerCare can be found in its current Annual Information Form, which is available on SEDAR at www.sedar.com.