REGINA, June 30, 2017 /CNW/ - SaskWorks Venture Fund Inc. ("SaskWorks" or the "Fund") has amended its articles effective June 30, 2017, to eliminate the Early Redemption Fee. Holders of Class A – Series A and/or Class R – Series A shares will no longer be subject to an Early Redemption Fee of up to 8% if they redeem their shares before the eight-year minimum holding period expires.
On May 31, 2017, SaskWorks Venture Fund Inc. (the "Fund") held a Special Meeting where the shareholders voted to amend the articles of the Fund to eliminate the Early Redemption Fee (the "Fee") from all share classes of the Fund (the "Amendment"). The Amendment is in effect for all existing shares and any new shares purchased. Sales commissions and trailers paid to dealers are unchanged.
The Fund's articles will be amended effective June 30, 2017, to eliminate the Fee. Previously, holders of Class A – Series A and/or Class R – Series A shares were charged a Fee. The Fee was 8% in the first year after purchase and declined by 1% per year until the shares reached maturity after the eighth year, after which the Fee was nil.
Section 8(1)(b)(ii) of Saskatchewan's Labour-sponsored Venture Capital Corporations Act requires that the Fund obtain ministerial approval prior to amending its articles. The Fund obtained the approval of the Ministry of the Economy (the "Ministry") on June 2, 2017, and will be providing a copy of the amended articles to the Ministry.
Please note that tax credit claw backs associated with early redemptions still apply. If shares of the Fund are redeemed before the eight-year minimum holding period expires, all tax credits must be repaid to the provincial and federal governments.
SaskWorks Venture Fund is a Saskatchewan-based retail mutual fund that invests in small- and medium-sized private businesses. Established in 2001, SaskWorks has more than 28,000 shareholders and over $452 million in assets under management.
SOURCE SaskWorks Venture Fund Inc.
For further information: Eric Clark, Investor Relations, SaskWorks Venture Fund, (306) 791-2113, [email protected]