October 07, 2016 19:10 ET
HALIFAX, NOVA SCOTIA--(Marketwired - Oct. 7, 2016) - GrowthWorks Atlantic Venture Fund Ltd. ("Atlantic Fund") provided an update today regarding the aggregate investment in the amount of $1.5 million (the "Investment") provided by three Canadian financial companies (collectively, the "Investors"), as previously announced on October 1, 2015. The Investors have agreed to amend certain Investment repayment terms to provide Atlantic Fund with additional financial flexibility while it focuses on maximizing the value of the venture portfolio and returns to shareholders. Under the amended terms, the Investors will receive a reduced percentage of the net proceeds generated from the sale of Atlantic Fund venture portfolio assets until certain net proceeds thresholds are achieved, after which, the percentage of net proceeds received by the Investors will revert to the original terms of the Investment agreement and continue until such time as the Investment and required return to the Investors is paid within the 36 month term of the Investment. In accordance with the terms of the Investment, the Investors can secure their Investment when the Atlantic Fund's net asset value, NAV, is less than ten times the aggregate amounts owed to the Investors. This condition has been satisfied and the Investment is now secured. Currently, the Atlantic Fund's NAV is $13.0 million and provides over 9 times coverage of the amount owed to the Investors.
Forward Looking Statements: This press release contains forward looking statements about the liquidity of Atlantic Fund including the value of the portfolios, future divestment activity, returns to shareholders, and payments required under loan agreements to the Investors. These statements are based on beliefs and assumptions of management of Atlantic Fund at the time the statements are made, including beliefs and assumptions about future market conditions and divestment activity. These beliefs and assumptions are subject to known and unknown risks and uncertainties, including risks and uncertainties associated with volatility of market conditions and, in turn, the future climate for divestment activity, and factors affecting sales of portfolio companies, other factors affecting the performance of portfolio companies, valuations of portfolio companies, financing needs of portfolio companies and the availability of capital to satisfy such financing needs and other risks and uncertainties disclosed in Atlantic Fund's most recent filings posted on SEDAR at www.sedar.com. These risks and uncertainties may cause actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements. Unless required by law, neither Atlantic Fund nor its manager assumes any obligation to update any forward-looking statements or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results or other factors.
Reference:Peter Clark, President & CEOGrowthWorks Atlantic Venture Fund Ltd.Suite 1502 - 1959 Upper Water StreetHalifax, Nova Scotia B3J 3N2Tel: 506-449-2969
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