Algonquin Power Venture Fund conversion plan update

    OAKVILLE, ON, April 17 /CNW/ - On January 31st, 2007 the Board of
Directors of the Algonquin Power Venture Fund Inc. ("the Fund") announced that
it had unanimously approved a plan, subject to regulatory and shareholder
approval, to restructure the Fund from its current status as a Labour
Sponsored Venture Capital Corporation ("LSVCC") to that of an exchange listed
public corporation. The key motivation behind the proposed restructuring, was
the opportunity to surrender the Fund's LSVCC status without subjecting
unitholders to any clawback of the provincial and federal tax credits.
    In accordance with the decision by the Board of Directors, Algonquin
Power Venture Management Inc. (the "Manager") provided the Ontario Ministry of
Finance (the "Ministry") with a notice of its intention pursuant to section
27(2.2)(b) of the Community Small Business Investment Funds Act (Ontario) (the
"Act") that it intends to dissolve or wind up subject to regulatory and
shareholder approval. In addition to the aforementioned notice, the Manager
has sought an advance tax ruling from the Ministry seeking confirmation that
the proposed restructuring will not result in any clawback of issued
provincial and federal tax credits.
    In accordance with section 27.2(4) of the Act, the Manager has
voluntarily suspended all purchases of the Fund and wishes to advise
shareholders that redemptions from the Fund remain subject to the full
provincial and federal tax credit clawback until such time as the Fund
receives approval of the proposed form of restructuring by the Ministry and
the outcome of the special meeting of the shareholders of the Fund described
    The Manager is presently preparing an information circular for
distribution to all shareholders disclosing details of the restructuring for
their consideration in connection with a special meeting of shareholders. Due
to the ongoing dialogue between the Fund and relevant regulatory authorities,
the date of the special meeting is as yet undetermined.
    The Algonquin Power Venture Fund invests in small and mid sized Canadian
businesses engaged in electrical power generation, distribution and
infrastructure sectors providing individual investors in Ontario a unique
opportunity to participate in the growth of independent electrical power

For further information:

For further information: Jeff Norman, President, (905) 465-4547 or Greg
Owttrim, Executive Vice President, (905) 465-4535

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890