HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 15, 2012) - GrowthWorks Atlantic Venture Fund Ltd. ("Atlantic Fund") announced today a re-structuring of Atlantic Fund's Board of Directors that will result in a reduction in the number of directors from 15 to 13 and the removal of director residency requirements for the Province of Prince Edward Island.
The Articles of Atlantic Fund provide that the Board of Directors may reduce the number of directors and elect not to apply the director residency requirements in respect of a particular province if residents of that province are not eligible to receive a provincial retail venture capital fund ("RVC") tax credit on purchases of Atlantic Fund Class A Shares. Since the inception of Atlantic Fund, Prince Edward Island has not offered a provincial RVC tax credit.
Rick Clarke, Chair of the Board of Directors of Atlantic Fund commented on the changes: "We would like nothing more than for PEI to offer a provincial tax credit to our investors so that Atlantic Fund can raise and invest capital in PEI. We know there are promising businesses in PEI that need capital to grow and generate jobs in that province. We thank our two PEI representatives, Carl Pursey and Andrew Robinson, for their many years of service to the fund."
The Board of Directors initiated and approved the proposed re-structuring and the re-structuring will take effect at Atlantic Fund's 2012 annual general meeting scheduled for December 10, 2012 ("AGM"). At the AGM, holders of Class A Shares will elect 5 directors, instead of 6, and the Sponsors of Atlantic Fund will elect 8 directors, instead of 9. Of the 13 Directors expected to be nominated for election at the AGM, 12 will be resident in Atlantic Canada. Continuing residency requirements ensure that at least three Directors are elected from each of Nova Scotia, New Brunswick and Newfoundland and Labrador. Each of these provinces offers a 20% provincial RVC tax credit to eligible purchasers of Atlantic Fund Class A Shares. If in the future a provincial RVC tax credit is offered in PEI, Atlantic Fund will re-establish PEI representation on the Board.
About GrowthWorks* (www.growthworks.ca): GrowthWorks™ managed funds provide investment capital for Canadian companies and tax-advantaged investment opportunities for Canadian investors through GrowthWorks Atlantic Venture Fund Ltd., the Working Opportunity Fund (EVCC) Ltd., GrowthWorks Commercialization Fund Ltd. and GrowthWorks Canadian Fund Ltd. GrowthWorks identifies, analyzes and structures investments in companies with high growth potential. Particular emphasis is placed on IT, Life Sciences and Cleantech sectors. Building on more than 18 years of investment expertise, GrowthWorks is a leader in Canadian venture capital management. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.
* GrowthWorks refers to affiliates of GrowthWorks Ltd. and includes: GrowthWorks Capital Ltd., manager of the Working Opportunity Fund (EVCC) Ltd.; GrowthWorks WV Management Ltd., manager of GrowthWorks Canadian Fund Ltd. and GrowthWorks Commercialization Fund Ltd.; and GrowthWorks Atlantic Ltd., manager of GrowthWorks Atlantic Venture Fund Ltd. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.
Commissions, trailing commissions, management fees and expenses all may be associated with retail venture capital fund (RVC) purchases. Please read the fund's prospectus before investing. RVCs are not guaranteed, their values change frequently and past performance may not be repeated. On December 16, 2005, the fund completed a merger by purchasing the assets of Workers Investment Fund Inc. in exchange for Class A shares distributed to former shareholders of that fund.