GrowthWorks Canadian Fund Ltd.

GrowthWorks Canadian Fund Ltd.

April 20, 2011 12:37 ET

GrowthWorks Canadian Fund Ltd.: VenGrowth Fund Shareholders Deliver Over 10,000 Support Agreements

TORONTO, ONTARIO--(Marketwire - April 20, 2011) - GrowthWorks Canadian Fund Ltd. ("GrowthWorks" or "GrowthWorks Canadian Fund") announced today it has received strong support from VenGrowth Class A Shareholders for the proposed merger of the five VenGrowth Funds noted below into GrowthWorks Canadian Fund. To date, GrowthWorks has received over 10,000 Support Agreements representing over 13,000 shareholder positions, over 8 million Class A shares and between approximately 7.5 to 10% of the outstanding Class A shares of the VenGrowth Funds. This level of support is very high for a widely-held investment fund.

"We thank VenGrowth shareholders and their investment advisors for their trust and confidence in our proposal and our process," states David Levi, CEO of GrowthWorks. "Since Day One we have been committed to a process that serves the best interests of the VenGrowth shareholders; something we believe the VenGrowth Board did not do when they recommended the Covington Proposal."

"Over 10,000 individual VenGrowth Fund shareholders signed our Support Agreement, which is a remarkable number for these kind of funds," continues Mr. Levi. "On average across the funds, GrowthWorks has received Support Agreements representing more shares than were represented at the meetings held to vote on the failed Covington/VenGrowth proposal, including shares voted for and against. About 7.4 million shares were represented at those meetings, which at the time was said to be unprecedented for these funds. Given the scare tactics employed by the VenGrowth Board during this process, we are very pleased with the level of support for our proposal. There appears to be little faith in the ongoing VenGrowth Board process."

GrowthWorks announced on March 18, 2011 that it is soliciting support agreements directly from Class A shareholders of the following VenGrowth funds (the "VenGrowth Funds"): The VenGrowth Investment Fund Inc., The VenGrowth II Investment Fund Inc., The VenGrowth III Investment Fund Inc., The VenGrowth Advanced Life Sciences Fund Inc., and The VenGrowth Traditional Industries Fund Inc., for the GrowthWorks Proposal. Full details are contained in an information circular (the "Information Circular") filed by GrowthWorks with Canadian securities regulatory authorities on www.sedar.com and posted at www.growthworks.ca.

The level of support received to date allows GrowthWorks to proceed with requisitioning meetings of shareholders of the VenGrowth Funds to vote on the GrowthWorks Proposal. If the terms of a proposal recommended by the VenGrowth Funds Board are judged by an independent Class A Shareholder Committee to be "superior" to the GrowthWorks Proposal, the power of attorney set out in the Support Agreements will fall away and shareholders who signed Support Agreements will be free to vote for the "superior" proposal. GrowthWorks is still receiving Support Agreements and will continue to accept the agreements from VenGrowth Fund shareholders who wish to support the GrowthWorks Proposal.

GrowthWorks urges VenGrowth Fund Class A shareholders to act now to protect their own interests by signing and returning the Support Agreement mailed to them and also available at www.sedar.com and www.growthworks.ca. VenGrowth shareholders have a choice to make. Do nothing and leave matters with the VenGrowth Board to carry forward again – knowing what happened last time. Or give your support to GrowthWorks and get the better "two horse race" process and better deal by signing and returning the Support Agreement.

The information in this press release is fully qualified by, and is subject to, the more detailed information contained in the Information Circular and Support Agreement sent to VenGrowth Fund shareholders. There can be no assurance that the merger contemplated by the GrowthWorks Proposal will be completed on the basis proposed or at all. Commissions, trailing commissions, management fees and expenses all may be associated with investment fund purchases. Read the fund's prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information

  • GrowthWorks Canadian Fund Ltd.
    David Levi
    President & Chief Executive Officer
    (416) 934-7700
    www.growthworks.ca