The Board of Directors of the Fund believes the extension of the closure of sales and redemptions of Venture Series shares is in the best interests of all shareholders given the range of possible outcomes that may flow from the Layer 7 transaction and related impact on the Fund's Venture Series share values and liquidity. Cindy Stewart, a Director of the Fund, commented, "We are excited by this announcement by CA to acquire Layer 7 and believe that it is prudent to extend the closure of sales and redemptions of Venture Series shares at this time to allow time for the potential sale transaction to close. We are pleased to see confirmation that the Fund's portfolio companies, such as Layer 7, represent world-class opportunities which continue to highlight British Columbia's reputation as a technology centre. Investments such as Layer 7 which result in successful exit opportunities show the value of patient venture capital investing, for both the economy and venture capital fund shareholders."
While definitive agreements related to the Layer 7 transaction have now been signed, there can be no assurance that the transaction will complete on the terms proposed or at all, nor can there be any assurance as to the impact of the transaction, if completed, on the Fund's Venture Series share values or liquidity. Other developments in the Fund's investment portfolio could impact Venture Series share values. There can also be no assurance that the Fund will resume weekly Venture Series share sales or redemptions. These outcomes are subject to risks and uncertainties. See "Forward Looking Statements" below.
About GrowthWorks(i) (www.growthworks.ca) GrowthWorks managed funds provide investment capital for Canadian companies and tax-advantaged investment opportunities for Canadian investors through the Working Opportunity Fund (EVCC) Ltd., GrowthWorks Atlantic Venture Fund 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 20 years of investment expertise, GrowthWorks is a leader in Canadian venture capital management. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.
Forward Looking Statements: This press release contains forward looking statements about the Layer 7 transaction and the impact of the transaction on Venture Series share values and the Fund's liquidity and the possible resumption of the Venture Series share redemptions and sales. These statements are based on beliefs and assumptions of management of the Fund at the time the statements are made, including beliefs and assumptions about the likelihood of the Layer 7 transaction closing, future market conditions and future levels of divestment activity and Venture Series redemption requests. These beliefs and assumptions are subject to known and unknown risks and uncertainties, including risks and uncertainties associated with volatility of market conditions and, in turn, the climate for divestment activity, factors affecting sales of portfolio companies, other factors affecting the performance of portfolio companies, valuations of portfolio companies, financing needs of portfolio companies and the availability of capital to satisfy such financing needs and other risks and uncertainties disclosed in the Fund's most recently filed prospectus and other regulatory filings posted on SEDAR at www.sedar.com. These risks and uncertainties may cause actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements. Unless required by law, neither the Fund nor its manager assumes any obligation to update any forward-looking statements or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results or other factors.
(i)GrowthWorks refers to GrowthWorks Ltd. and: 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.
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund purchases. Please read the Fund's prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Dividends on Commercialization Series shares are not guaranteed.
GrowthWorks Capital Ltd.
President & CEO
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