HALIFAX, Nova Scotia, May 01, 2018 (GLOBE NEWSWIRE) -- GrowthWorks Atlantic Venture Fund Ltd. (the “Atlantic Fund”) announced today an aggregate $750,000 distribution to shareholders under the Pro Rata Redemption Plan (“PRRP”). In accordance with the terms of the previously approved PRRP, the distribution amount will be allocated to each Atlantic Fund shareholder on a proportionate basis and processed on May 1, 2018.
Under the PRRP, each shareholder’s proportionate amount of the distribution will be used to redeem, to the extent possible, mature shares held by the shareholder at NAV per share at that time and for any remaining balance, by converting on a one for one basis a portion of non-mature shares held by the shareholder into shares of a new series which will be redeemed at the same NAV per share after they become mature or at any time provided the shareholder repay applicable tax credits.
Atlantic Fund adopted the Pro Rata Redemption Plan to distribute available cash generated from an orderly realization of value from dispositions in Atlantic Fund’s venture portfolio while maintaining funds for projected liabilities and anticipated operating expenses, and, if necessary, potential defensive follow-on investments (to preserve Atlantic Fund’s rights and preferences). In determining the distribution amount for redemption, Atlantic Fund’s board of directors assessed the amount of funds received from a divestment in the venture portfolio which was announced on February 19, 2018 and the amount of projected liabilities and forecasted operating expenses.
The adoption of the PRRP followed a full review by Atlantic Fund’s board of directors of strategic options directed towards realizing on the potential value of the venture portfolio, providing liquidity to shareholders and ensuring fairness among all shareholders. Atlantic Fund received shareholder ratification of the PRRP on February 16, 2016.
For more information about the PRRP, we encourage you to review Atlantic Fund’s most recent Annual Information Form and Management Report of Fund Performance as well as a set of frequently asked questions (FAQ’s) available on the Fund’s website at www.growthworks.ca. In conjunction with the PRRP, Atlantic Fund intends to provide limited priority for processing redemptions in the very restricted circumstances of hardship dispositions such as death, terminal illness, disability, and permanently unfit for work.
Forward Looking Statements: This press release contains forward looking statements about Atlantic Fund’s ability to assess projected liabilities, anticipated operating expenses and potential follow-on investments. These statements are based on beliefs and assumptions of management of Atlantic Fund at the time the statements are made, including beliefs and assumptions about future market conditions, projections on liabilities and operating expenses and the Fund’s ability to manage its available cash resources performance, the portfolio companies’ need for and access to further financing other risks and uncertainties disclosed in Atlantic Fund’s most recent 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. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless required by law, neither Atlantic 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. No assurance can be given as to the timing or any amount of funds that will available for future distribution to shareholders under the Pro Rata Redemption Plan or otherwise or that Atlantic Fund will be able to complete an orderly realization of value (at current values or otherwise).
Reference:
Peter Clark
President & CEO
GrowthWorks Atlantic Venture Fund Ltd.
Suite 1502 – 1959 Upper Water Street
Halifax, Nova Scotia, B3J 3N2
Tel: (506) 449-2969