Axis Investment Fund Inc.

October 08, 2010 13:51 ET

Axis Investment Fund Inc. Announces Sale of Portfolio Assets

TORONTO, ONTARIO--(Marketwire - Oct. 8, 2010) - Axis Investment Fund Inc. (the "Fund") announced today that it has completed the sale of all or substantially all of its portfolio assets (the "Portfolio Asset Sale") to NorthStar Bancorp Limited ("NorthStar") pursuant to a portfolio asset purchase agreement dated July 23, 2010 between the Fund and NorthStar (the "Purchase Agreement") in exchange for $465,000 in cash. 

On July 23, 2010, the Fund announced that it had entered into the Purchase Agreement in connection with the Portfolio Asset Sale. The Portfolio Asset Sale and Purchase Agreement were unanimously approved at the special meeting of the Class A shareholders and Class B shareholder (each voting separately as a class) held on August 25, 2010 (the "Meeting"). At the Meeting, the Class A shareholders and Class B Shareholder (each voting separately as a class) also unanimously approved the voluntary liquidation and dissolution of the Fund (the "Wind-up") in accordance with the provisions of the Community Small Business Investment Fund Act ("CSBIF Act"). The Wind-Up may be subject to regulatory and tax approvals. A wind-up in accordance with the CSBIF Act will not result in any clawback of tax credits that have been issued upon the redemption or cancellation of shares of the Fund. 

As a result of the completion of the Portfolio Asset Sale, the Fund will now proceed with the Wind-Up which will include the satisfaction of any remaining obligations of the Fund, providing a final capital distribution to Class A shareholders and the Class B shareholder, and completing the dissolution of the corporate entity. These actions are expected to take place by November 30, 2010. 

The record date for the final distribution to the Fund's Class A shareholders and Class B shareholder is set as October 13, 2010. The Fund will announce the date and the amount of the final distribution to its shareholders by press release.

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.

About NorthStar Bancorp Limited

NorthStar Bancorp Limited is a private merchant banking firm comprised of entrepreneurial investors and experienced business leaders with hands-on operational expertise. NorthStar primarily pursues investment opportunities in Canadian micro and small cap companies which operate within preferred industry sectors. These include healthcare software/services, environmental remediation, industrial technologies, telematics, and SaaS/cloud computing. NorthStar provides ongoing financing assistance combined with capital markets support and hands on management guidance to investee companies to assist them in capturing immediate growth potential. 

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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