TORONTO, Dec. 17 /CNW/ - Covington Capital Corporation ("Covington") announced today that Covington Fund II Inc. ("Fund II") has agreed to terminate the Acquisition Agreement of the five retail venture capital funds: The VenGrowth Investment Fund Inc, The VenGrowth II Investment Fund Inc., The VenGrowth III Investment Fund Inc, The VenGrowth Advanced Life Sciences Fund Inc., and The VenGrowth Traditional Industries Fund Inc. (collectively the "VenGrowth Funds").
The transaction received shareholder approval at the November 25, 2010 Annual and Special Meeting of Fund II and the VenGrowth Funds. The transaction was subject to regulatory approval and the Board has concluded that, due to external factors, such approval will not be forth coming. The Board has decided not to proceed with the proposed acquisition of the VenGrowth Funds at this time.
This decision does not affect the intention of Fund II to proceed with the acquisition of the assets of New Generation Biotech Equity Fund Inc. The process for completing the acquisition is being considered by the board.
The Board and Management remains fully committed to the management of Fund II and will continue to seek out strategic growth opportunities that best support the ability of the Fund to maximize return potential to its shareholders.
About Covington Group of Funds
Established in 1994, Covington Capital Corporation is one of Canada's largest providers of venture capital investment funds. Managing over $200 million in assets, Covington provides Canadians with the ability to access venture capital investment opportunities via their suite of retail venture capital product offerings.
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