HALIFAX, Oct. 1, 2015 /CNW/ - GrowthWorks Atlantic Venture Fund Ltd. ("Atlantic Fund") announced today that it has entered into loan agreements with three Canadian financial companies (collectively, the "Investors") providing the Atlantic Fund with an aggregate investment in the amount of $1.5 million (the "Investment"). The Investment, together with the recently announced amended and restated management agreement and exemptive relief, provides the Atlantic Fund with working capital to enhance operating and financial flexibility while it focuses on maximizing the value of the venture portfolio and returns to shareholders.
Under the terms of the Investment, the Investors will receive a percentage of the net proceeds generated from the sale of Atlantic Fund venture portfolio assets until such time as the Investment and required return to the Investors is paid within the 36 month term of the Investment. The Investment is unsecured and will remain unsecured provided the Atlantic Fund's meets certain covenants including maintaining the Atlantic Fund's net asset value ("NAV") greater than ten times the aggregate amounts owed to the Investors. The Atlantic Fund's NAV is currently $23.2 million.
The Investment was approved by the Atlantic Fund's Board of Directors and was the result of a board initiated direction to address near-term working capital requirements. The Investment was also reviewed by Atlantic Fund's Independent Review Committee.
Forward Looking Statements: This press release contains forward looking statements about the liquidity of Atlantic Fund including the value of the portfolios, future divestment activity, returns to shareholders, addressing near-term working capital requirements, and payments required under loan agreements to the Investors. 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, divestment activity and the strategic review by Atlantic Fund's board. These beliefs and assumptions are subject to known and unknown risks and uncertainties, including risks and uncertainties associated with volatility of market conditions and, in turn, the future climate for divestment activity, and factors affecting sales of portfolio companies, other factors affecting the performance of portfolio companies, valuations of portfolio companies, financing needs of portfolio companies and the availability of capital to satisfy such financing needs 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. 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.
SOURCE GrowthWorks Atlantic Venture Fund Ltd.
For further information: 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