TORONTO, Feb. 3, 2014 /CNW/ - As previously announced, on January 31, 2013, Lawrence Enterprise Fund Inc. (the "Fund") obtained an initial regulatory order in connection with the decision of the Fund's Board of Directors (the "Board") to suspend Class A share redemptions. On July 31, 2013, the Fund obtained a second regulatory order extending the effect of the initial order to January 31, 2014. The Fund announced today the granting of a further order that extends the effect of the previous orders to July 31, 2014.
Typical exit strategies for the Fund's venture investments are still inhibited by the lack of a market in this current economic climate. The Fund's portfolio of venture investments cannot be exited in the current market as a result of the lack of IPOs and mergers for the past several years. In order to avoid redemptions pressuring the Fund to liquidate its investments in a "fire sale" manner that would cause a significant further reduction in the value of the portfolio investments to the Fund and the net asset value of the Class A shares, the Board has determined it is in the best interest of all holders of Class A shares (the "Shareholders") to continue to suspend redemptions. The Board and the Fund's manager, Cambridge Asset Management Inc., believe that this measure will continue to prevent any short and mid-term liquidity challenges, help achieve optimal exit values for maturing portfolio companies and ensure that proceeds generated from those exits are returned to all Shareholders.
Lawrence Enterprise Fund Inc. is a labour-sponsored investment fund that invests in public and private companies in Ontario with the objective of providing shareholders with long-term capital appreciation through investments in growth and expansion stage companies in a variety of industry sectors.
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "believe", "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of the Fund. There are no assurances the Fund can fulfill such forward-looking statements and the Fund does not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Fund, some of which are beyond the control of the Fund.
SOURCE: Lawrence Enterprise Fund Inc.
For further information: Larry Guy, Chief Executive Officer, Lawrence Enterprise Fund Inc., (416) 930-7660