Capital Alliance Ventures Inc.

June 27, 2005 18:24 ET

Capital Alliance Ventures Inc. Announces Changes to Fund Policies

TORONTO, ONTARIO--(CCNMatthews - June 27, 2005) - Capital Alliance Ventures Inc.

Fund Sales to Resume July 4, 2005

Capital Alliance Ventures Inc. ("CAVI" or the "Fund") announced today that it has revised its valuation policies to conform with the recommended valuation guidelines published by the Canadian Venture Capital Association. The Fund's previous valuation policies and procedures were generally similar to the CVCA guidelines so the change in valuation policies did not result in a change in the price of the Fund's Class A shares.

Also, the Fund's Board has approved an amendment to CAVI's investment approval process, which gives the CEO and CFO of the Fund the authority to approve follow-on investments of up to $500,000. All initial investments and follow-on investments greater than $500,000 will remain subject to approval by the Investment Committee of the Board.

Under the recently introduced National Instrument 81-106, Investment Fund Continuous Disclosure, the Fund is required by July 1, 2005 to have guidelines in place governing how shares in all portfolio companies are voted, and to begin maintaining a proxy voting record regarding public portfolio companies. The Board has approved the adoption of proxy voting guidelines whereby the Fund will vote the proxies associated with the Fund's investments in a manner which it believes to be in the best interests of the Fund.

Particulars of the proxy voting guidelines will be disclosed in the Fund's prospectus amendment to be filed June 28, 2005 and a full copy of the proxy voting guidelines is available from the Fund on request.

As previously announced, the Fund went off-sale on March 11, 2005 to deal with interim operational changes relating to the change of control of its Manager, Fullarton Capital Corporation. With these changes now largely completed, sales of the Fund's Class A shares will resume on or about July 4, 2005.

Contact Information

  • Fullarton Capital
    Tracey Morrison
    (604) 862-6098