HALIFAX, August 5, 2015 /CNW/ - GrowthWorks Atlantic Venture Fund Ltd. ("Atlantic Fund") has entered into an Amended and Restated Management Agreement ("Agreement") with its manager, GrowthWorks Atlantic Ltd. ("Manager") effective August 1, 2015. The Agreement ensures the Atlantic Fund will continue to receive the management services it requires to identify exit opportunities and maximize returns from its portfolio companies while at the same time closely managing its expenses.
As of August 1, the Atlantic Fund will pay its own direct operating expenses. The Manager has reduced its management fee to an annualized rate of 1% of the Fund's average net asset value which will be accrued quarterly and payable when distributions are made to shareholders. In addition, the Atlantic Fund restructured the methodology for calculating the Manager's incentive participation dividend, subject to approval by the Atlantic Fund's shareholders.
A Strategic Review Committee established by the Atlantic Fund's board of directors along with its independent counsel continues to review alternatives for providing liquidity for the Atlantic Fund's shareholders. The Atlantic Fund continues to allow shareholders to request redemptions of their shares. However, as is currently the case, the Atlantic Fund cannot process redemption requests. Shareholders may complete and sign the Atlantic Fund's redemption request form, which is available at www.growthworks.ca/atlantic.
Forward Looking Statements: This press release contains forward looking statements including about the review of alternatives for providing liquidity to the Atlantic Fund's shareholder and obtaining shareholder approval to changes in the methodology for a restructuring of the Manager's participation dividend. There can be no assurance regarding the outcome of the strategic review or that Atlantic Fund will be able to provide liquidity to shareholders. These statements are based on beliefs and assumptions of management of Atlantic Fund at the time the statements are made and are subject to known and unknown risks and uncertainties.
SOURCE GrowthWorks Atlantic Venture Fund Ltd.
For further information: Peter Clark, President & CEO, GrowthWorks Atlantic Venture Fund Ltd., Suite 1502 - 1959 Upper Water Street, Halifax, Nova Scotia B3J 3N2, Tel: 506-449-2969