HALIFAX, Nova Scotia, Aug. 28, 2018 (GLOBE NEWSWIRE) -- GrowthWorks Atlantic Venture Fund Ltd. (the “Atlantic Fund” or “Fund”) announced today a distribution to GIC Series shareholders resulting from the GIC Series’ specific guaranteed investment certificate investment (the “GIC Distribution”) and that it has converted the remaining GIC Series shares into the Fund’s Balanced Series. The Fund also announced that it has received exemptive relief from certain securities laws requirements.
On May 1, 2018, the Fund completed an initial distribution to all shareholders under the pro rata redemption plan. Since that time, the Fund prepared a supplemental assessment of the amount of funds available for pro rata allocation within each of the Balance Series and GIC Series based on each series’ assets and liabilities using the Fund’s cost allocation methodology and including reserving approximately 18 months’ worth of estimated future costs. The Fund’s board of directors determined that only the GIC Series held sufficient available funds for a supplemental distribution as a result of the GIC Series’ specific liquid asset in the form of a guaranteed investment certificate. The GIC Distribution was $870,000 in aggregate and was allocated pro rata to each GIC Series shareholder on a proportionate basis and processed effective August 24, 2018. Each GIC shareholder’s proportionate amount of the GIC Distribution was used to redeem, to the extent possible, mature shares held by the GIC shareholder at Net Asset Value (“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 repays applicable tax credits.
The GIC Shares and the Balanced Shares have always participated in the same venture investment portfolio and the Fund regularly assesses the fair market value of each venture investment. Prior to the GIC Distribution, a write down in the value of the venture portfolio took place in accordance with the Fund’s industry standard policies for assessing fair value of its venture investments. At the time of the GIC Distribution, the Net Asset Value per Share (NAV/Share) of the Balance Series was $2.41 and the NAV/Share of the GIC Series was $5.35. Following the GIC Distribution, both series non-venture assets were held in the same investments to fund working capital, and therefore with the common venture portfolio the two series could be considered a single investment fund under applicable securities laws. Following the GIC Distribution, the remaining NAV of GIC Series was $0.1 million. On August 28, 2018, the GIC Shares were converted into the Balanced Series in accordance with previously disclosed share rights based on the series’ relative NAV per Series Share and each GIC Share was converted into 2.21 Balanced Shares.
Atlantic Fund also reports that in connection with continuing efforts to reduce operating costs, it received on August 9, 2018 relief from certain securities regulations including an exemption from the requirement to prepare and deliver interim and annual management reports of fund performance (MRFP) and Annual Information Form (AIF) and the requirement to have an independent valuation. The exemptive relief obtained by the Atlantic Fund is subject to certain conditions and was based largely on the view that the information in the MRFP, AIF and valuation report would not provide significant benefit to shareholders as Atlantic Fund does not expect a significant number of changes in its financial position throughout each year due to the composition of Atlantic Fund’s portfolio assets, comprised primarily of a small number of venture investments and liquid non-venture investments for working capital purposes. Atlantic Fund will continue to prepare and file interim and annual financial statements and expects to benefit from costs savings associated with no longer preparing the MRFP, AIF or valuation report.
Forward Looking Statements: This press release contains forward looking statements about Atlantic Fund’s ability to assess projected liabilities, anticipated operating expenses and future costs savings. 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 future cost savings and the Fund’s ability to manage its available cash resources performance, and 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).