Click here to close now.



Welcome!

Microsoft Cloud Authors: Jayaram Krishnaswamy, Dana Gardner, David Bermingham, Pat Romanski, Adine Deford

News Feed Item

GrowthWorks Canadian Fund Disappointed That RMP Not Approved

Fund to process redemption requests when sufficient liquidity is available

TORONTO, ONTARIO -- (Marketwire) -- 12/03/12 -- As previously announced, on November 10, 2011, GrowthWorks Canadian Fund Ltd. ("Canadian Fund") obtained an initial regulatory order in connection with the Board of Directors' decision to close Class A Share redemptions. The initial order was extended to July 31, 2012 and then to November 30, 2012 (the "Order"). Canadian Fund had applied to extend the effect of the previously granted Order to July 31, 2013. Securities regulators elected not to grant the extension, as they were unable to conclude that granting the extension on the terms requested by Canadian Fund would not be prejudicial to the public interest. Securities regulators proposed a six-week extension of the Order with a condition that no management fees or other compensation be paid or accrue to the manager of Canadian Fund. The proposed extension was not acceptable to Canadian Fund as complying with the terms of the extension would have forced Canadian Fund to breach the management contract with its manager and caused a default under financing arrangements put in place to support Canadian Fund's liquidity. Securities regulators also advised Canadian Fund that they are not willing to issue an order that would allow Canadian Fund, when cash is available, to periodically process redemptions under the Redemption Management Plan or "RMP" adopted by the Board of Directors and approved by shareholders of Canadian Fund.

Canadian Fund closed redemptions of Class A Shares just over one year ago on November 10, 2011. While other retail venture capital funds have applied for and been granted orders allowing for the closure of redemptions for more than two years, securities regulators have advised Canadian Fund that they consider Canadian Fund's situation to be novel because of the financing arrangements put in place to support Canadian Fund's liquidity.

Ian Ross, Chairman of the Board responded, "While we are disappointed by the decision of the securities regulators to not extend the order, the Board of Directors will continue to pursue options aimed at serving the best interests of shareholders."

As a result of this decision by securities regulators, Canadian Fund must, under applicable securities laws, allow shareholders to request redemptions of their Class A Shares. However, under applicable corporate laws, Canadian Fund can process Class A Share redemption requests only if after doing so Canadian Fund would remain in a position to pay its liabilities as they become due. At present, the Board of Directors cannot conclude that Canadian Fund would meet this statutory test if Canadian Fund were to process anticipated redemption requests as received. As a result, Canadian Fund will not process redemption requests that are submitted until such time as the Board of Directors of Canadian Fund determines that Canadian Fund would meet this test. There can be no assurance as to when Canadian Fund will have sufficient cash available to process Class A Share redemptions.

Accordingly, Canadian Fund cannot process Class A Share redemption requests at this time and therefore redemption requests cannot be submitted electronically through FundServ. Redemption requests must be submitted manually using a Redemption Request Form provided by Canadian Fund's Manager. The Redemption Request Form will be available during the week of Monday, December 3, 2012 on GrowthWorks' website at www.growthworks.ca. Canadian Fund will issue a further announcement outlining the procedures for submitting redemption requests and the terms and conditions on which redemption requests will be processed. Further announcements will also be made at such time as the Board of Directors determines that Canadian Fund meets the statutory test for processing Class A Share redemptions. These announcements will be made in advance of any redemption dates that may be designated by the Board of Directors.

Canadian Fund's assets consist primarily of venture investments in private Canadian corporations in the technology, biotechnology and advanced manufacturing sectors. Canadian Fund's ability to generate cash is entirely dependent on levels of divestment activity in the venture portfolio, activity that is highly sensitive to market conditions. Canadian Fund continues to actively pursue divestments of portfolio assets which are determined to be in the best interests of Canadian Fund, as well as make selected follow-on investments. There can be no assurance as to the timing or value of these divestments or as to Canadian Fund's ability to discharge its payment obligations under the debt financing arrangements put in place to support Canadian Fund's liquidity. Details of the financing arrangements are set out in Canadian Fund's press releases of May 28, 2010 ("GrowthWorks Canadian Fund enters into a Participation Agreement with Roseway Capital") and May 23, 2012 ("GrowthWorks Canadian Fund Provides Update on Financing Arrangements"). A total of $33.5 million was advanced to Canadian Fund under the financing arrangements and approximately $11.7 million (including interest) is due to be paid on account of the financing arrangements on December 20, 2012, and a further $27.2 million (including interest and participation amounts) is due to be paid by May 28, 2013. Canadian Fund's payment obligations under these financing arrangements are secured by charges over Canadian Fund's portfolio assets and/or proceeds from the sale of those assets. If Canadian Fund were to default on its obligations under the financing arrangements, the security over Canadian Fund's assets may be enforced, which could result in forced divestments at values well below carrying values and a significant decline in Class A Share values.

The Board of Directors of Canadian Fund continues to review strategic options aimed at realizing the value potential that is believed to exist in Canadian Fund's venture investment portfolio and at providing liquidity for shareholders of Canadian Fund. These options are considered in light of a range of factors, including Canadian Fund's cash position, actual and projected levels of divestment activity, payment obligations under financing arrangements, other operating commitments and the prospects for generating divestment values in excess of carrying values.

Forward-Looking Statements: This press release contains forward-looking statements about Canadian Fund Class A Share redemptions, Canadian Fund's ability to make follow-on investments, to complete divestments from its venture investment portfolio and to make payments under financing arrangements. These statements are based on beliefs and assumptions of management of Canadian Fund at the time the statements are made, including beliefs and assumptions about Canadian Fund's ability to generate sufficient cash to satisfy its payment obligations under financing arrangements and to process Class A Share redemptions, future market conditions and future levels of divestment activity and Class A Share 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, performance of portfolio companies, valuations of portfolio companies, the risk that Canadian Fund may not be able to generate sufficient net proceeds from the divestment of portfolio assets to satisfy its obligations under its outstanding secured indebtedness, financing needs of portfolio companies and the availability of capital to satisfy such financing needs and other risks and uncertainties disclosed in Canadian 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 Canadian Fund nor its manager assumes any obligation to update any forward-looking statements, whether as a result of new information, future events or results or other factors.

Contacts:
GrowthWorks Canadian Fund Ltd.
David Levi
President and Chief Executive Officer
(416) 934-7700
Suite 2200, Exchange Tower
130 King Street West, Toronto, Ontario M5X 1E3

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...