TORONTO, Aug. 24, 2017 /CNW/ - GrowthWorks Commercialization Fund Ltd. (the "Fund") provided an update on the legal proceedings commenced by the Fund against the former manager of the Fund, GrowthWorks WV Management Ltd. (the "Former Manager"). In those proceedings, the Fund sought to recover $1.45 million in cash withdrawn from the Fund's bank accounts by the Former Manager and paid to itself on account of amounts the Former Manager claimed were owing by the Fund as a result of the termination of the management agreement between the Fund and the Former Manager in January 2017. On January 27, 2017, the Ontario Superior Court of Justice (the "Court") ordered an interim injunction restraining, among other things, the liquidation and transfer of the funds in dispute. That injunction was subsequently extended to the final disposition of the Fund's application. The matter was heard by the Court on July 31, 2017.
On August 23, 2017, the Court released its decision and issued an order granting the Fund's application. In its ruling, the Court declared that the payment by the Former Manager to itself was unauthorized and illegitimate and ordered the Former Manager to repay forthwith $1.45 million to the Fund. The Court also dismissed a cross-application brought by the Former Manager in connection with the Fund's proceedings against the Former Manager and awarded legal costs of $35,000 to the Fund. The Former Manager has the right to appeal the Court's ruling within 30 days. If the ruling is appealed, the Court's order for payment will be stayed and the injunction will remain in effect, in each case until the final disposition of all appeals. An appeal of the Court's ruling and, or, the failure by the Former Manager to comply with the Court's order for payment would have a material adverse effect on the Fund's liquidity. The outcome of any such appeal cannot be predicted with any certainty.
SOURCE GrowthWorks Commercialization Fund Ltd.
For further information: C. Ian Ross, Chairman of the Board of Directors, (416) 619-9118