Axis Investment Fund Inc.

November 06, 2009 16:38 ET

Axis Investment Fund Inc. Suspends Redemptions and Subscriptions

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2009) - Axis Investment Fund Inc. (the "Fund") announced today that it has halted redemptions and subscriptions of shares of the Fund while its board of directors (the "Board of Directors") explores strategic options to maximize returns for all of the Fund's shareholders.

This decision follows careful consideration by the Board of Directors regarding the best interests of all of the Fund's shareholders, the Fund's current asset size and liquidity situation, the present market conditions, the Fund's inability to make adequate follow-on investments in its venture investments and the anticipated requests for redemptions by holders of the Fund's Class A shares. The Independent Review Committee of the Fund has determined that the decision to halt redemptions and subscriptions of the shares of the Fund achieves a fair and reasonable result for the Fund.

Following the decision in 2005 to phase out the Ontario provincial tax credit for investors of labour sponsored investment funds, the Fund has experienced declining sales and, consequently, the anticipated requests for redemptions would have to be satisfied mostly from sales of the Fund's investments. As a result of continuing adverse market conditions it is difficult for management of the Fund to exit these venture investments to generate enough cash to fund the anticipated redemption requests in a manner that would be in the best interest of all shareholders.

The Board of Directors believes that it is in the best interest of all the Fund's shareholders to suspend redemptions and subscriptions in order to ensure all shareholders are treated fairly with respect to redemption proceeds. The Board of Directors will continue to explore strategic options for the Fund to optimize returns to shareholders in an orderly manner, which may be subject to regulatory and/or shareholder approvals. The Board of Directors expects to call a meeting of the shareholders in February 2010. During the suspension, the Fund will continue to price its net asset value per share daily.

About Axis Investment Fund Inc.

Axis Investment Fund Inc., established in 2001 is registered as a labour sponsored investment fund corporation in Ontario. The Fund invests in eligible businesses engaged in the information technology sector, particularly in small and medium-sized eligible information technology businesses, with the objective of achieving long-term capital appreciation.

Certain statements contained in this press release may include forward-looking information with respect to the Fund's operations and future financial results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. Further information can be found in the disclosure documents filed by the Fund at

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