GrowthWorks Canadian Fund Ltd.

GrowthWorks Canadian Fund Ltd.

December 17, 2010 20:20 ET

VenGrowth & Covington Terminate Proposed Acquisition Transaction-GrowthWorks

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2010) - Late today, VenGrowth & Covington announced that they will not proceed with the previously announced sale of the VenGrowth Fund assets to Covington Fund II. The decision follows a request by the OSC for new votes by VenGrowth Funds shareholders with full disclosure of original manager-to-manager arrangements associated with the proposed transaction.

"We're pleased with the OSC decision to require a new vote. We believe that shareholders were not told the full story of this deal," said David Levi, President & CEO of GrowthWorks.

GrowthWorks Canadian Fund submitted a merger proposal to the VenGrowth Funds' board last week which outlined an offer that is significantly better than Covington's proposal. "With the termination of the Covington offer, we feel confident that the VenGrowth board and shareholders will want to vote on our proposal as soon as possible."

Mr. Levi went on to comment, "In the six weeks since VenGrowth Fund unit holders and advisors began approaching GrowthWorks seeking a better alternative, there have been many developments. This process has only added to our respect of the advisor distribution channel and their desire to protect unit holder interests."

For more information about the events leading-up to today's announcement, go to www.growthworks.ca.

About GrowthWorks (www.growthworks.ca) GrowthWorks™ managed funds provide investment capital for Canadian companies and tax-advantaged investment opportunities for Canadian investors. GrowthWorks manages approximately $560 million in assets through the GrowthWorks Canadian Fund Ltd., GrowthWorks Commercialization Fund Ltd., GrowthWorks Atlantic Venture Fund Ltd., and Working Opportunity Fund (EVCC) Ltd. GrowthWorks identifies, analyzes and structures investments in companies with high growth potential. Building on more than 18 years of investment expertise, GrowthWorks is a leader in Canadian venture capital management.

Commissions, trailing commissions, management fees and expenses all may be associated with investment fund purchases. Please read GrowthWorks Canadian Fund Ltd.'s prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. GrowthWorks Canadian Fund Ltd. purchased the assets of Canadian Science and Technology Growth Fund Inc. and Capital Alliance Ventures Inc. in 2005, First Ontario Labour Sponsored Investment Fund Ltd. in 2006, ENSIS Growth Fund Inc. in 2008 and Canadian Medical Discoveries Fund Inc. in 2009, in each case in exchange for Class A shares. ENSIS is a registered trademark of ENSIS Capital Corporation.

Contact Information

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