TORONTO, Jan. 21 /CNW/ - Jovian Capital Corporation ("Jovian") (JOV: TSX)
and its subsidiary JovFunds Management Inc. ("JovFunds"), announce that
JovFunds has agreed to the principle terms with Canadian Medical Discoveries
Fund Inc. ("CMDF") and GrowthWorks WV Management Ltd. ("GrowthWorks WV") by
which JovFunds would effectively terminate the various CMDF related management
contracts to which JovFunds and its affiliates are parties (the "CMDF
This agreement is a further step to the November 7, 2008 announcement
that CMDF and GrowthWorks Canadian Fund Ltd. ("Canadian Fund") had entered
into a letter of intent to complete a possible merger transaction ("Merger")
whereby CMDF would merge into the Canadian Fund.
JovFunds will provide all reasonable assistance to facilitate the
completion of the Merger on or before April 30, 2009 and will receive various
payments from CMDF and GrowthWorks WV in the approximate aggregate amount of
$6 million upon completion of the Merger, and may also receive future payments
based on the success of the Canadian Fund. The Merger remains subject to
numerous conditions including the execution of definitive agreements, CMDF
shareholder approval and regulatory approval.
As a result, Jovian anticipates incurring an impairment charge of
approximately $10 million in its third quarter, to reflect the impact of the
current fair value of the CMDF Contracts.
About JovFunds Management Inc. (www.jovfunds.com)
JovFunds provides innovative investment solutions for Canadians through
the creation, distribution and management of high quality investment products.
JovFunds manages and distributes in excess of $2 billion in client assets and
is wholly owned by Jovian Capital Corporation.
About Jovian Capital Corporation (www.joviancapital.com)
Jovian acquires, creates and grows financial services companies
specializing in wealth and asset management. The Jovian group of companies
(AlphaPro Management Inc., BetaPro Management Inc., Horizons Funds Inc.,
JovFunds Inc., JovFunds Management Inc., JovInvestment Management Inc., Leon
Frazer & Associates Inc., MGI Securities Inc., MGI Securities (USA) Inc., MGI
Financial Inc., T.E. Wealth and Felcom Data Services Inc.) manages $12.0
billion of client assets ($5.0 billion in assets under management and $7.0
billion in assets under administration). Additional information is available
at www.joviancapital.com and www.sedar.com.
For further information:
For further information: Steven Hawkins, Managing Partner, JovFunds
Management Inc., (416) 601-2442; or Don Sangster, Investor Relations, Jovian
Capital Corporation, (416) 933-5744