Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Greg O'Connor, Jason Bloomberg

News Feed Item

GrowthWorks Commercialization Fund Reports on Ontario Ministry of Finance Final Audit Findings, Suspension of Share Redemptions and Closing of Share Offering

TORONTO, ONTARIO -- (Marketwired) -- 01/09/14 -- GrowthWorks Commercialization Fund Ltd. (the "Fund") today provided an update on a previously disclosed audit by the Ontario Ministry of Finance (the "Ministry"). The Fund also announced its decision to suspend Class A share redemptions and to close the Fund's 14 Series Share offering.

Ontario Ministry of Finance Audit Findings

On November 29, 2013, the Fund announced that it had recorded a liability for the Fund's 05 Series of Class A Shares based on further developments related to preliminary audit findings from the Ministry's review of the Fund's compliance with certain investment requirements under the Community Small Business Investment Funds Act (Ontario) (the "Ontario Act") for the years 2005 through 2008. The Fund announced today that it has now received the final audit findings of the Ministry for these years and that the Ministry has not revised its preliminary findings. Those findings require a payment by the Fund of $230,493.15 for investment pacing taxes owing, a research business investment penalty of $1,794,068.57 and interest owing on those amounts of $1,070,323.38. The Ontario Act provides for a notice of objection process whereby the Fund may object to the Ministry's findings. The manager of the Fund (the "Manager") disagrees with the audit findings and intends to initiate, on behalf of the Fund, notice of objection proceedings under the Ontario Act with respect to the findings.

Based on the Manager's assessment of the preliminary audit findings, the Fund recognized a $1.32 million liability for taxes and penalties that may be imposed as a result of the Ministry's audit findings. The recorded balance includes $178,858 of accrued interest. The liability was allocated to the 05 Series of Class A Shares because the 05 Series represents a consolidation of the Series that were issued and participating in the Fund's venture portfolio during the period under review. The liability does not affect the net asset value per share of other Series, namely the 10 Series, 11 Series, 12 Series, 13 Series, or 14 Series.

The determination to recognize a $1.32 million liability was made following an assessment of written feedback received from the Ministry. The liability was recognized in the Fund's financial statements effective as at August 31, 2013 because such determination was made before completion of the preparation of the Fund's year end financial statements. For purposes of determining net asset value for share transactions, the liability was recognized effective as at November 29, 2013. Nothing provided in the Ministry's final audit findings has resulted in the Fund amending its recorded balance to date, although additional liabilities may be recognized in the future during or following the conclusion of the notice of objection or related appeal proceedings. There can be no assurance as to the outcome of the notice of objection or any related appeal proceedings or as to the quantum of any increase or decrease in the liability in respect of taxes or penalties resulting from the Ministry's audit findings. There can be no assurance that the Ministry will not review subsequent fiscal years or that any such review will not result in additional liabilities for penalties and interest that would be allocated to Series 10, Series 11, Series 12 or Series 13 Class A Shares of the Fund.

Suspension of Class A Share Redemptions

The obligation to pay the assessed Ontario taxes and penalties arises immediately, regardless of the Fund's disagreement with the assessed amount or any appeal undertaken by the Fund. Under applicable laws, the Fund can process Class A Share redemption requests only if after doing so the Fund would remain in a position to pay its liabilities as they become due. As a result of the Fund's obligation to pay those assessed amounts, the Board of Directors of the Fund cannot conclude that the Fund would meet this statutory test if the Fund were to process anticipated redemption requests as received. Accordingly, the Fund will not process redemption requests that are submitted until such time as the Board of Directors determines that the Fund would meet this test. There can be no assurance as to when, or if, the Fund will have sufficient cash available to process Class A Share redemptions.

The Fund will continue, as required under applicable securities laws, to allow shareholders to request redemptions of their Class A Shares. However, the Fund cannot process Class A Share redemption requests at this time and therefore redemption requests cannot be submitted electronically through FundServ. The following procedures are those established by the Fund for the submission and processing of Class A Share redemption requests. Further terms and conditions may be determined by the Board of Directors of the Fund from time to time.


--  Redemption Requests must be submitted manually using a Redemption
    Request Form approved by the Board of Directors of the Fund, which will
    be available on January 16, 2014 at www.growthworks.ca or on request by
    emailing [email protected] and by calling 1-800-268-8244.
--  The Fund will not accept Redemption Request Forms that are incomplete or
    incorrect and will not accept alternative forms of redemption requests
    not approved by the Board of Directors.

The Fund will not process redemption requests that are submitted until such time as the Board of Directors of the Fund determines that the Fund meets the legal requirements for doing so. There can be no assurance as to when, or if, the Fund will have sufficient cash available to process Class A Share redemptions.

The Fund's assets consist primarily of venture investments in small to medium sized private Canadian corporations that are early stage research-orientated companies. The 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. The Fund continues to actively pursue divestments of portfolio assets which are determined to be in the best interests of the Fund, as well as make selected follow-on investments. There can be no assurance as to the timing or value of these divestments.

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

14 Series Off Sale

The Fund's Class A share offering for the 14 Series has been closed to new purchases, which follows from the one-year lapse date of the Fund's prospectus dated January 7, 2013. As a result, the Fund is offering no shares to the public at this time and does not expect to make such an offering in the immediate future.

Forward Looking Statements: This press release contains forward looking statements about (i) the outcome of notice of objection and any related appeal proceedings with respect to Ministry's final audit findings, (ii) the quantum of any adjustments that may be made in respect of taxes and penalties resulting from the Ministry's audit findings following the conclusion of such proceedings, (iii) the closing of the Fund's Class A Share redemptions and future redemption periods, (iv) the Fund's liquidity, including about the Fund's ability to make dividend payments, make venture investments and process Class A Share redemption requests, and (v) the Fund's decision to not offer Class A Shares to the public. 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 arguments supporting the Fund's position with respect to the Ministry's audit findings, divestment market conditions generally and within the sectors in which the Fund's portfolio companies operate, timing and levels of Class A Share redemption requests, potential dividends payable to shareholders, investment activity and expectations for divesting from investments in the Fund's venture portfolio, the Fund's ability to generate sufficient cash to process Class A Share redemption requests, and the general market conditions for share offerings of retail venture capital funds. These beliefs and assumptions are subject to known and unknown risks and uncertainties, including risks and uncertainties associated with interpreting legislation that has not been litigated, the application of legislative discretion by the Minister of the Finance for Ontario, and uncertainty surrounding the outcome of administrative and potential court proceedings regarding the Ministry's audit findings, economic and market conditions, including divestment market conditions, investment activity and divestment activity, the timing and levels of Class A Share redemption requests, and the Fund's ability to generate sufficient cash to satisfy those redemption requests. 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. Dividends are not guaranteed.

Contacts:
GrowthWorks Commercialization Fund Ltd.
David Levi
Chief Executive Officer
(416) 934-7700
www.growthworks.ca

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 the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust I...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this case) takes into account the number and quality of contextual references that a user receives.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are configurable to any form factor or custom configuration. AIC leads the industry with nearly 20 years of ...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and Care Packs. As a trusted supplier, CBS guarantees quality controlled stock levels thanks to an Auto...
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
GENBAND introduced its Real Time Communications (RTC) Client for Lync* to seamlessly combine real-time communications with Lync Instant Messaging (IM) and Presence. “We’re shaking up the economics of delivering Unified Communications (UC) and offering a compelling way to integrate previously bespoke communications technologies,” said Carl Baptiste, GENBAND’s Senior Vice President, Enterprise Solutions. “We’re offering enterprises the best of both worlds by combining our own high availability voice, video and collaboration with Lync’s IM and Presence; creating a single, web centric, client. O...
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT.
SYS-CON Events announced today that Optimal Design, an Internet of Things solution provider, will exhibit at SYS-CON's Internet of @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Optimal Design is an award winning product development firm offering industrial design and engineering services to the consumer, medical, and defense markets.
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Software Development, Product Management and Product Marketing, applied across Wireless, Unified Communic...
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.