Capvest Income Corp. today proposed a change to the company’s investment objectives and a consolidation of its common shares.

The company is seeking shareholder approval to change Capvest’s investment objectives from focusing on commodity futures contracts reflecting four Rogers International commodity indices (RICI Portfolio) and commodity related income and royalty funds to focus on investing, directly or indirectly, in a diversified group of infrastructure and energy companies.

Capvest intends to target an annual yield of approximately 6%, paid on the common shares, if the new investment objective is approved.

Since establishing the current investment objective in October 2005, neither the board of directors nor management of Capvest has been satisfied with the returns of the RICI Portfolio. Management believes that the company can achieve higher and more stable returns and can access a source of income which is absent from its current investment objective by investing in a diversified group of energy-related income and royalty funds and investing, directly and indirectly, in a diversified group of publicly traded infrastructure companies in Canada and other member countries of the Organization for Economic Co-operation and Development (OECD).

The infrastructure companies in which Capvest will invest will be selected to provide shareholders with long-term exposure to strong and stable returns through distributions and/or dividends from its portfolio of investments, as well as potential capital growth in these investments.

The Capvest board is also seeking shareholder approval to consolidate the common shares of the company at a ratio of up to 15 to one. Management believes that the proposed consolidation will raise the share price to more attractive levels, reduce the shareholder transaction cost and improve trading liquidity. The company’s name will not change as a result of the consolidation.

The change to Capvest’s investment objectives and a consolidation of its common shares will require approval of the shareholders at a special meeting to be held on March 6,. The proposed consolidation is also subject to the TSX Venture Exchange approval.

CAPVEST Income Corp. is an investment corporation listed on the TSX Venture Exchange. Its common shares and 7% convertible debentures trade under the symbols CVS and CVS.DB, respectively. CAPVEST Income Corp. is managed by Sentry Select Capital Corp.