Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

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
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...