VenGrowth Asset Management Inc.

VenGrowth Asset Management Inc.

March 25, 2011 12:46 ET

GrowthWorks' Solicitation is Abusive to VenGrowth Shareholders

VenGrowth Special Committee Files Complaint with OSC–ASKS THEM TO STOP THE ABUSE

TORONTO, ONTARIO--(Marketwire - March 25, 2011) - The Special Committee of VenGrowth Funds confirmed that it has filed a formal complaint with the Ontario Securities Commission ("OSC") about GrowthWorks' solicitation of support agreements from shareholders of the VenGrowth Funds and the information circular and support agreement that GrowthWorks Canadian Fund has distributed to them.

The complaint asserts that the GrowthWorks' solicitation of irrevocable support agreements is abusive to shareholders and that the March 14, 2011 circular and accompanying support agreement contain serious misrepresentations, fail to make key disclosures, and do not comply with applicable corporate and securities law.

"We are hearing from many shareholders, who have seen through GrowthWorks' blatant attempt to strip away their rights. Some of these shareholders and their advisors have complained directly to the OSC," said John Kingston, Chair of the Special Committee of VenGrowth Funds. "High-handed, irrevocable powers of attorney and deliberate attempts to mislead investors about their choices should never be judged to be appropriate. We hope that the OSC can act quickly to ensure that VenGrowth shareholders remain free to choose any of the options that will become available as a result of the Special Committee's efforts to enhance shareholder value and liquidity."

Kingston added: "We hope that GrowthWorks will re-consider and submit its proposal to be reviewed as part of the independent process that sixteen other parties have accepted without issue."

The Best Offer Is Still To Come

Kingston continued: "The Special Committee of the VenGrowth Funds' Boards of Directors assisted by independent advisors will be actively evaluating several proposals obtained through the ongoing competitive process. VenGrowth shareholders will be presented with a transaction that has had the benefit of a competitive process and has gone through a thorough independent financial and legal review. The process we are following is designed to generate the best transaction for shareholders."



Contact Information

  • Media Inquiries:
    VenGrowth Asset Management Inc.
    Wesley Ollson
    Director, Product Management and Communications
    (416) 628-9263