VANCOUVER, Sept. 27 /CNW/ - BC Medical Innovations Fund (EVCC) Inc.
("BCMIF" or the "Fund") and Working Opportunity Fund (EVCC) Ltd. ("WOF")
announced today that they have signed an agreement (the "Agreement") to merge
BCMIF into WOF. This transaction (the "Merger"), which is subject to
shareholder and regulatory approvals, is expected to close in mid-November
Under the terms of the Agreement, the Merger will be completed through an
asset purchase transaction whereby WOF will acquire the net assets of BCMIF
and shareholders of BCMIF will become shareholders of WOF. Each BCMIF
shareholder would receive Class A shares of WOF in exchange for their Class A
shares of BCMIF at a value equivalent to their BCMIF shares based on an
exchange ratio using relative net asset value of the funds at the time of the
Merger. Since the Merger is material to BCMIF shareholders, the terms must
first be approved by the shareholders of BCMIF at a special meeting to be held
on October 29, 2007. If approved and completed, the Merger will not result in
any claw-back of tax credits or any sales charges to BCMIF shareholders. Given
the size of BCMIF's assets relative to WOF's assets, the Merger does not
represent a material change for WOF and therefore, is not subject to approval
of WOF shareholders. Further details of the Merger will be contained in the
meeting materials sent to BCMIF shareholders.
"Given the size of the Fund and our limited ability to raise new capital
in the current market environment, we believe that this merger is the best
alternative for BCMIF shareholders to maximize value without incurring any
adverse tax consequences," said Steven Hawkins, President & CEO of BCMIF.
"We believe this is a good deal for shareholders and BCMIF as they will
benefit from GrowthWorks' expertise in the asset class and region," said David
Levi, President & CEO of GrowthWorks Capital Ltd., the manager of WOF.
"Shareholders will also have exposure to WOF's larger and more diversified
About BC Medical Innovations Fund (EVCC) Inc. (www.bcmif.com)
BCMIF is an employee venture capital corporation that focuses exclusively
on investing in eligible businesses in the health sciences sector in British
Columbia. Medical Innovations Management Inc. is the manager of the Fund, and
is a wholly-owned subsidiary of JovFunds Management Inc. ("JovFunds"), which
is itself a wholly-owned subsidiary of Jovian Capital Corporation ("Jovian").
About JovFunds Management Inc. (www.jovfunds.com)
JovFunds provides innovative investment solutions for Canadian investors
through the creation, management and distribution of high quality investment
products. JovFunds oversees the management and distribution of over 50
investment products, currently has over $1.3 billion in assets under
management and is a member of the Jovian group of companies. Jovian (JOV: TSX)
is a publicly-traded management and holding company with interests in a
variety of financial service firms specializing in wealth and asset
management. The Jovian group of companies operates as a national financial
services organization with approximately $14.5 billion of client assets
($5.4 billion assets under management and $9.1 billion assets under
About GrowthWorks (www.growthworks.ca)
GrowthWorks(TM) managed funds provide investment capital for Canadian
companies and tax-advantaged investment opportunities for Canadian investors.
GrowthWorks(*) manages over $800 million in assets through the Working
Opportunity Fund (EVCC) Ltd., GrowthWorks Atlantic Venture Fund Ltd.,
GrowthWorks Commercialization Fund Ltd. and GrowthWorks Canadian Fund Ltd.
GrowthWorks identifies, analyzes and structures investments in companies with
high growth potential. Particular emphasis is placed on IT, Life Sciences and
Advanced Manufacturing sectors. Building on over 15 years of investment
expertise, GrowthWorks is a leader in Canadian venture capital management.
(*) GrowthWorks refers to affiliates of GrowthWorks Ltd. and includes:
GrowthWorks Capital Ltd, manager of the Working Opportunity Fund (EVCC)
Ltd.; GrowthWorks WV Management Ltd., manager of GrowthWorks Canadian
Fund Ltd. and GrowthWorks Commercialization Fund Ltd.; and GrowthWorks
Atlantic Ltd., manager of GrowthWorks Atlantic Venture Fund Ltd.
GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.
For further information:
For further information: Steven Hawkins, President & CEO, BCMIF and
Managing Partner, JovFunds Management Inc., Phone 1-866-601-2440 or please
visit www.bcmif.com; Tracey Morrison, Vice-President, National Marketing and
Communications, GrowthWorks Capital Ltd., Phone (604) 862-6098