Labour-sponsored venture capital funds

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Re: Labour-sponsored venture capital funds

Postby DanH » 28 May 2011 23:20

al42 wrote:Only a few days left in May and still no news. I guess the longer it takes the more they can rape investors with their monthly fees.

The Special Committee continues to work towards a timeline that will see a transaction selected
for presentation to shareholders in May of this year.


OSC Hearing on GrowthWorks to Proceed (May 14)

GrowthWorks Offers Further Flexibility to VenGrowth Shareholders (May 13)

GrowthWorks Looks Forward to Speaking to Its "Better Deal" Process for VenGrowth Shareholders at Hearing (May 5)

Added: Application: In the Matter of Vengrowth Funds, Growthworks Canadian Funds Ltd. and Growthworks Ltd. (May 2)

Added: GrowthWorks Canadian Fund Ltd.: VenGrowth Fund Shareholders Deliver Over 10,000 Support Agreements (Apr 20)

I'm guessing that the whole process is halted until the hearing, which takes place on June 1.
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Re: Labour-sponsored venture capital funds

Postby al42 » 01 Jun 2011 05:13

Looks like a better offer.

VenGrowth Enters Into Letter Agreement with Covington
Special Committee selected the deal after a rigorous process
Definitive merger agreement to be signed upon successful regulatory and legal interventions
Deal targeted to close on or about August 31, 2011
Highlights
• Deal targeted to close on or about August 31, 2011
• Beneficial redemption options for shareholders
• Redemptions can begin immediately on closing
• Increased liquidity to finance redemptions and follow-on investing
• Combined cash and near-cash to increase to approximately $74 million
• MERs expected to decrease by an average of approximately 50 basis points
• No contract termination costs paid by the VenGrowth Class A shareholders
Toronto, May 31, 2011 - The Boards of Directors of the VenGrowth Funds today announced the Funds have entered into a letter agreement with Covington Capital Corporation (“Covington”) as the agent for Covington Fund II Inc. (“Covington II”). This deal was selected following a comprehensive Special Committee process where 54 potential parties were approached. The letter agreement outlines a transaction in which Covington II would merge with the five retail VenGrowth funds:
The VenGrowth Investment Fund Inc. (“VenGrowth I”)
The VenGrowth II I nvestment Fund Inc. (“VenGrowth II”)
The VenGrowth III Investment Fund Inc. (“VenGrowth III”)
The VenGrowth Advanced Life Sciences Fund Inc. (“VenGrowth ALS”), and
The VenGrowth Traditional Industries Fund Inc. (“VenGrowth TIF”)
(collectively the “VenGrowth Funds”) and the New Generation Biotech (Equity) Fund (“NGBE”) in exchange for shares of Covington II (based on the net asset value of the VenGrowth Fund shares, Covington II shares and the NGBE shares on the closing date), with the result that shareholders of the VenGrowth Funds who do not elect to redeem their VenGrowth Fund shares on the terms set out in the letter agreement will become shareholders of Covington II.
“The deal is structured to serve VenGrowth Class A shareholders’ interests by establishing a closing date and providing the financial resources needed for redemptions and follow-on financing,” said John Crow, Chair of the Board of the VenGrowth Funds and Co-Chair of the Special Committee of the VenGrowth Funds. “We have a negotiated agreement that can be implemented without additional costs to the VenGrowth Funds, and overall fees will be reduced.”
Mr. Crow continued, “This deal is proceeding to a definitive merger agreement. A management information circular will be mailed if and when we receive a successful regulatory or other outcome regarding GrowthWorks’ solicitation. The Special Committee’s position in our application to the OSC is that VenGrowth shareholders themselves should be able to consider and choose the transaction they determine is best for them.”
“Covington is very pleased to have negotiated this deal to acquire the VenGrowth Funds,” said Scott Clark, Managing Partner, Covington Capital Corporation. “We look forward to signing a definitive merger agreement and putting the deal in front of shareholders for their consideration.”
Deal Terms and Conditions
Closing Date
The transaction is targeted to close on or about August 31, 2011.
Negotiated Deal
Covington and the Special Committee of the VenGrowth Funds, along with their respective legal and financial advisors, have developed a comprehensive deal. Due diligence has been substantially completed by both parties.
Increased Cash Resources
Combined cash and near-cash is expected to increase to an estimated total of $74 million before considering public venture investments.
Beneficial Redemption Options
• Shareholders in VenGrowth Traditional Industries and VenGrowth III will continue to have no redemption restrictions.
• VenGrowth I, VenGrowth II, and VenGrowth Advanced Life Sciences shareholders will have two options – they may elect to immediately redeem up to $30 million in aggregate of their shares for cash at a value that is equal to the net asset value (“NAV”) per share at closing less a redemption fee of 25% or, alternatively, they will receive an equivalent value of Covington II shares reflecting the full value of their VenGrowth Fund shares determined at the date of closing. If shareholders request redemptions in excess of $30 million, redemptions will be processed on a pro rata basis.
• Shareholders in VenGrowth I, VenGrowth II and VenGrowth ALS that receive Covington II shares may also receive 15% of their shareholdings in cash each year without any redemption fee. Such redemptions are expected to be available approximately six months after closing and continue for four years. These annual redemption options are non-cumulative and will expire if not exercised in any given year. After these four years, there will be no redemption restrictions.
Financing
• Financing for the redemption option will be managed through a debt facility, which is being arranged by Covington through entities managed by Paul Capital Advisors, LLC. The debt facility will be $20 million to $30 million with an approximate annual interest charge of 18%. To repay the loan, Paul Capital will receive a percentage of sale proceeds.
• These financial resources are expected to be adequate to fund estimated redemptions as well as follow on investment requirements.
Reduced Fees
• For most VenGrowth Class A shareholders the ongoing Management Expense Ratios (“MERs”) are expected to decrease by an average of approximately 50 basis points.
Preserving Shareholder Value
• No contract termination costs, reserves or adjustments will be paid from or charged to the Class A shareholders of the VenGrowth Funds.
• Based on due diligence that has been completed prior to the signing of the letter agreement, the parties have agreed on a portfolio valuation process involving their respective auditors. This process ensures a fair approach to determining relative value at closing in order to protect the interests of the Class A shareholders of the VenGrowth Funds, Covington II and NGBE.
Manager and Sponsor Fees
• Negotiated arrangements have been completed under the supervision of the Special Committee with both the VenGrowth Managers and the Sponsors.
• Covington will be taking over as Manager of the Funds. The existing management and administration contracts for the VenGrowth Funds will be terminated. No contract termination costs will be paid by the VenGrowth Class A shareholders. Termination costs will be paid out of the ongoing management fees at a rate of 1.4% of NAV - without any increase in cost to shareholders. Overall management fees will be reduced.
• Covington II will pay an Incentive Participation Amount (“IPA”) of 15% (reduced from the current 20%) for the VenGrowth Funds’ investments in the merged portfolio. The IPA is only payable if the full amount of the original cost of the specific investments transferred into Covington II is recovered.
• The IPA will be shared equally between Covington and the VenGrowth Manager.
• New retail funds raised and managed by Covington will also share fee income equally between Covington and the VenGrowth Manager.
• The existing Capital Maintenance Fees will terminate eight years from the date of the issuance of the applicable shares.
• The VenGrowth Manager will provide reasonable transition services as required.
• The Canadian Police Association and the Association of Canadian Financial Officers will become co-sponsors of the merged Covington II, but the total sponsor fees will not exceed 16 basis points of the combined fund’s NAV, which is less than the sponsor fees being paid by the VenGrowth Funds.
Rigorous Process Followed
The Special Committee of the VenGrowth Funds established a rigorous, open and competitive process to find the best deal for VenGrowth Class A shareholders. To aid their work, the Special Committee received independent financial advice from Crosbie & Company Inc. (“Crosbie”).
In reviewing all of the proposals submitted, the Special Committee and Crosbie considered, among other things, the following criteria:
• the liquidity of the merger partner must not risk the ability of VenGrowth shareholders to seek redemptions either immediately or in the future;
• the valuations and return potential of the merger partner’s portfolio;
• the merger partner’s track record for creating shareholder value;
• the ability to lower expected ongoing management fee structure and MERs; and,
• how the merger partner intends to finance any liquidity proposed for VenGrowth shareholders.
In the course of their review, Crosbie approached a total of 54 entities, including other LSVCCs, venture capital management companies, private equity groups, pension funds, mutual fund companies, secondary asset buyers, and groups that provide other forms of portfolio financing. Based on an extensive review, Crosbie and the Special Committee concluded that the Covington transaction represented the most attractive alternative for the Class A shareholders of the VenGrowth Funds.
Conditions
Once the definitive merger agreement has been signed, the completion of the transaction would be subject to the following conditions:
• VenGrowth Class A shareholders approve the transfer of at least $200 million of fund assets to Covington II
• receipt of all applicable regulatory, shareholder and other third-party approvals and consents.
Non Solicitation, Fiduciary Out and Transaction Expenses
The definitive merger agreement will contain customary non-solicitation provisions restricting the ability of the VenGrowth Funds to solicit alternative transactions. This condition is subject to a customary “fiduciary out” allowing the boards of the VenGrowth Funds to accept an alternative offer that they consider to be superior.
The definitive merger agreement will also include a $1 million break fee payable to Covington.
Covington, the VenGrowth Funds, and the VenGrowth Manager have agreed to cost sharing arrangements associated with certain transaction and merger costs. Both Covington and the VenGrowth Manager have the right to cap their respective costs at $1.75 million. Certain of these costs would be recoverable by the managers if the transaction fails to close.
Finalizing Definitive Merger Agreement and Information Circular
Covington and the VenGrowth Special Committee target to complete a definitive merger agreement and information circular on or about June 9, 2011.
Covington will sign the definitive merger agreement if and when the Ontario Securities Commission or a court orders that VenGrowth shares cannot be voted under support agreements solicited by GrowthWorks or if GrowthWorks agrees not to vote such shares.
Covington Maintains Right to Terminate Letter Agreement
Covington has the right to terminate its obligations under the letter agreement if the support agreements solicited by GrowthWorks can be voted in favour of the GrowthWorks proposal or against the approval of the proposed transaction with Covington; or the definitive merger agreement has not been executed by July 31, 2011.
OSC Hearing Against GrowthWorks on June 1
The Special Committee is proceeding with their application to the Ontario Securities Commission to cancel the GrowthWorks’ support agreements. The OSC hearing is scheduled to start on June 1, 2011.
If you have any questions please contact your financial advisor or VenGrowth client services at 1-800-461-4814. You may also send us an email at questions@vengrowth.com or visit www.vengrowth.com.
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Re: Labour-sponsored venture capital funds

Postby Shine » 01 Jun 2011 07:11

Labour sponsered funds are black holes, all the rules of the universe suggest it is best to not get close...in fact avoid and avoid.
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Re: Labour-sponsored venture capital funds

Postby adrian2 » 01 Jun 2011 08:47

Shine wrote:in fact avoid and avoid.

Avoid a void!
:rofl:
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Re: Labour-sponsored venture capital funds

Postby jaberwock » 05 Jun 2011 12:35

LSVCC - you get a tax break for making a really bad investment - no thanks
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Re: Labour-sponsored venture capital funds

Postby parvus » 10 Jun 2011 20:03

From Morningstar:
Weighing the new Covington proposal for Vengrowth funds
On the positive side, the contentious termination fees payable to the VenGrowth managers will come out of the ongoing MERs of the funds without any increase in cost to the unitholders, according to Covington's filing. From the unitholders' point of view, that's highly preferential to the up-front payment of 5% they were being asked to make under the original arrangement.


Furthermore, the ongoing performance fee on the funds is being lowered from 20% to 15%, and the high-water marks, above which the NAV needs to get before new performance fees are accrued, will remain at their current levels rather than being reset upon the closing of the deal.


Finally, the redemption fee for those who want out immediately is going from 40% to 25%.


On the negative side, only $30 million in total can get access to that initial redemption, which amounts to only about 10% of the assets. Any redemption requests above that level will be filled on a pro-rata basis. In a situation like that, where investors feel like they will only receive a portion of the amount they ask for, they are likely to put in requests for much higher amounts. Thus any individual investors that want their money back may only get a small portion, and that at a 25% discount to NAV.


As well, financing for the redemptions is expected to come at a punitive 18% interest rate, which is ultimately borne by the redeeming investors.
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Re: Labour-sponsored venture capital funds

Postby bill2009 » 11 Jun 2011 19:56

As well, financing for the redemptions is expected to come at a punitive 18% interest rate, which is ultimately borne by the redeeming investors.

Wouldn't investors be best served by an orderly windup of this thing: Sell the portfolio and distribute whatever you get.

Don't go borrowing money at 18%, don't pay termination fees or retention bonuses, just shut it down in a receivership. If Covington or growthworks wants to buy the portfolio they can step right up and do it, borrowing money if they need to.

Does anybody have John Crow's email address?
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Re: Labour-sponsored venture capital funds

Postby chantl01 » 30 Jun 2011 18:03

Looks like maybe it is not really a better deal: GrowthWorks Reveals Undisclosed Coercive Terms in Latest VenGrowth/Covington Pact

http://www.marketwire.com/press-release/growthworks-reveals-undisclosed-coercive-terms-in-latest-vengrowth-covington-pact-1533271.htm
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Re: Labour-sponsored venture capital funds

Postby al42 » 14 Jul 2011 17:14

The Covington Offer: Summary Sheet
Highlighted Deal Terms:
Independently Reviewed
& Recommended
An independent financial advisor reviewed the Transaction against a wide range of
alternatives and advised that the Transaction is superior to other known alternatives,
including any “proposal” from GrowthWorks. An independent financial advisor has
provided a fairness opinion to the Board of Directors of each Fund that the Transaction
is fair from a financial point of view to the Class A shareholders of that Fund.
Certain Closing Conditions
Any merger transaction involving your Funds requires that all parties conduct
comprehensive due diligence and then negotiate detailed terms with the successor
manager (the Covington Manager in this case), with the departing managers (the
VenGrowth Managers) and the VenGrowth Sponsor. The key steps have been
completed, with a closing expected by August 31, 2011. This means that the
Transaction with Covington Fund II can be implemented quickly after your vote. No
other proposal has undergone such diligence and negotiations, including any
“proposal” from GrowthWorks.
Improves Financial Position
of VenGrowth Funds
The Transaction with Covington Fund II will provide consolidated cash resources,
creating an ability to maximize your value by using the combined fund’s increased
access to cash to provide enhanced redemption options and to create an improved
ability to provide follow-on financing to the venture portfolio.
Improves Redemption
Options*
* For shareholders in VenGrowth I Fund,
VenGrowth II Fund and VenGrowth Advanced
Life Sciences Fund. Shareholders of
VenGrowth Traditional Industries Fund and
VenGrowth III Fund continue to have no
redemption restrictions.
1. Redeem at Closing with a 15% redemption fee.
2. Redeem 15% of shares each year penalty-free per the following schedule:
Post Closing1 15% of shares
August 31, 2012 15% of shares
August 31, 2013 15% of shares
August 31, 2014 15% of shares
August 31, 2015 All remaining shares may be redeemed
Reduces Operating Costs
The Transaction with Covington Fund II is expected to result in a decrease of overall
MERs by 0.79% (see page 21 of the Information Circular for more information) for the
Class A shareholders of the Funds. · The Transaction with Covington Fund II will result in
reduced costs overall to Covington Fund II through increased economies of scale and
greater efficiency in operations.
1 Shares will be available for redemption within 6 months of the deal closing (anticipated to be August 31, 2011)
 Improved financial position of
the VenGrowth Funds
 Improved redemption options
 Reduced operating costs (MERs)
Vote FOR the Covington Offer
before 10:00 am Eastern Time
August 23, 2011
Meeting Date: 10:00am Eastern Time
August 25, 2011
Toronto Board of Trade
1 First Canadian Place
77 Adelaide Street W
Toronto, Ontario
The Covington Offer: Voting
• The Covington Offer must be approved by 66%
of voting shareholders in order to close.
• Redemptions set to resume immediately after closing.
• No other offer can close as rapidly or as certainly.
• The Special Committee of the VenGrowth Board of
Directors strongly recommends that all shareholders
vote FOR the Covington Offer
• VenGrowth will be soliciting shareholder support
via third-party proxy solicitation agents
Vote FOR the Covington Offer
before 10:00 am Eastern Time
August 23, 2011
Meeting Date: 10:00am Eastern Time
August 25, 2011
Toronto Board of Trade
1 First Canadian Place
77 Adelaide Street W
Toronto, Ontario
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Re: Labour-sponsored venture capital funds

Postby bill2009 » 14 Jul 2011 17:22

al42 wrote:The Covington Offer: Summary Sheet
Highlighted Deal Terms:
Independently Reviewed
& Recommended
An independent financial advisor reviewed the Transaction against a wide range of
alternatives and advised that the Transaction is superior to other known alternatives,
including any “proposal” from GrowthWorks. An independent financial advisor has
provided a fairness opinion to the Board of Directors of each Fund that the Transaction
is fair from a financial point of view to the Class A shareholders of that Fund.
Certain Closing Conditions
Any merger transaction involving your Funds requires that all parties conduct
comprehensive due diligence and then negotiate detailed terms with the successor
manager (the Covington Manager in this case), with the departing managers (the
VenGrowth Managers) and the VenGrowth Sponsor. The key steps have been
completed, with a closing expected by August 31, 2011. This means that the
Transaction with Covington Fund II can be implemented quickly after your vote. No
other proposal has undergone such diligence and negotiations, including any
“proposal” from GrowthWorks.
Improves Financial Position
of VenGrowth Funds
The Transaction with Covington Fund II will provide consolidated cash resources,
creating an ability to maximize your value by using the combined fund’s increased
access to cash to provide enhanced redemption options and to create an improved
ability to provide follow-on financing to the venture portfolio.
Improves Redemption
Options*
* For shareholders in VenGrowth I Fund,
VenGrowth II Fund and VenGrowth Advanced
Life Sciences Fund. Shareholders of
VenGrowth Traditional Industries Fund and
VenGrowth III Fund continue to have no
redemption restrictions.
1. Redeem at Closing with a 15% redemption fee.
2. Redeem 15% of shares each year penalty-free per the following schedule:
Post Closing1 15% of shares
August 31, 2012 15% of shares
August 31, 2013 15% of shares
August 31, 2014 15% of shares
August 31, 2015 All remaining shares may be redeemed
Reduces Operating Costs
The Transaction with Covington Fund II is expected to result in a decrease of overall
MERs by 0.79% (see page 21 of the Information Circular for more information) for the
Class A shareholders of the Funds. · The Transaction with Covington Fund II will result in
reduced costs overall to Covington Fund II through increased economies of scale and
greater efficiency in operations.
1 Shares will be available for redemption within 6 months of the deal closing (anticipated to be August 31, 2011)
 Improved financial position of
the VenGrowth Funds
 Improved redemption options
 Reduced operating costs (MERs)
Vote FOR the Covington Offer
before 10:00 am Eastern Time
August 23, 2011
Meeting Date: 10:00am Eastern Time
August 25, 2011
Toronto Board of Trade
1 First Canadian Place
77 Adelaide Street W
Toronto, Ontario
The Covington Offer: Voting
• The Covington Offer must be approved by 66%
of voting shareholders in order to close.
• Redemptions set to resume immediately after closing.
• No other offer can close as rapidly or as certainly.
• The Special Committee of the VenGrowth Board of
Directors strongly recommends that all shareholders
vote FOR the Covington Offer
• VenGrowth will be soliciting shareholder support
via third-party proxy solicitation agents
Vote FOR the Covington Offer
before 10:00 am Eastern Time
August 23, 2011
Meeting Date: 10:00am Eastern Time
August 25, 2011
Toronto Board of Trade
1 First Canadian Place
77 Adelaide Street W
Toronto, Ontario

I guess this is a vengrowth press release? No attribution?
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Re: Labour-sponsored venture capital funds

Postby al42 » 14 Jul 2011 17:32

Yes it is, sorry about that.

http://www.vengrowth.com/covington.html
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Re: Labour-sponsored venture capital funds

Postby al42 » 01 Aug 2011 13:07

any opinions on the latest Growthworks offer?

http://www.growthworks.ca/vengrowth/doc ... _FINAL.pdf
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Re: Labour-sponsored venture capital funds

Postby RomaneeConti » 11 Aug 2011 10:05

Yesterday, I looked at the latest Growthworks response for the August decision. Suddenly the idea struck me: Covington, Growthworks, Vengrowth, they are all the same. They execute badly upon an idea that is wonderful.

The wonderful idea is that Canada needs to grow its culture of innovation. New ideas and technologies that can lift our standard of living above our resource-based economy. Venture Capital is a good way for this to do it. But it takes commitment from investors and business savvy in Management.

So, I reviewed the current portfolio of companies that Vengrowth had invested. To be fair, a lot of the companies were technology and science based, and I cannot evaluate the business merits of them. But I saw a couple of obvious mistakes. A golf equipment distributor? Now inactive. Castlemore Golf Club? How are these innovative and creative? I suspect the decision makers with the cheque books had enjoyed a few rounds with a few fancy new clubs to help sway their decision to invest with our money.

I no longer care about getting the "best offer terms". After all the NAV is in tatters now. Instead, I would vote for the BEST MANAGEMENT. By that I mean, the Management who demonstrably are the best in taking new ideas successfully to market. The best Management can screen out the losers and pick up the winners and can help bring the best new products and services to the public. For the current portfolio, the best Management can make a tangible kick-butt influence on the Boards of the companies that are current investees. That would be a win-win-win scenario for the Customer / Business / Investor that I would appreciate.

In the end, I want seasoned business leaders fighting to grow enterprise value. Instead, I get seasoned lawyers fighting proxy battles with pieces of paper.
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Re: Labour-sponsored venture capital funds

Postby bill2009 » 11 Aug 2011 11:00

RomaneeConti wrote:I no longer care about getting the "best offer terms". After all the NAV is in tatters now. Instead, I would vote for the BEST MANAGEMENT. By that I mean, the Management who demonstrably are the best in taking new ideas successfully to market. The best Management can screen out the losers and pick up the winners and can help bring the best new products and services to the public. For the current portfolio, the best Management can make a tangible kick-butt influence on the Boards of the companies that are current investees. That would be a win-win-win scenario for the Customer / Business / Investor that I would appreciate.

In the end, I want seasoned business leaders fighting to grow enterprise value. Instead, I get seasoned lawyers fighting proxy battles with pieces of paper.

I myself would settle for someone winding it up and distributing the tatters.
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Re: Labour-sponsored venture capital funds

Postby RomaneeConti » 09 Sep 2011 17:35

bill2009 wrote:
RomaneeConti wrote:I no longer care about getting the "best offer terms". After all the NAV is in tatters now. Instead, I would vote for the BEST MANAGEMENT. By that I mean, the Management who demonstrably are the best in taking new ideas successfully to market. The best Management can screen out the losers and pick up the winners and can help bring the best new products and services to the public. For the current portfolio, the best Management can make a tangible kick-butt influence on the Boards of the companies that are current investees. That would be a win-win-win scenario for the Customer / Business / Investor that I would appreciate.

In the end, I want seasoned business leaders fighting to grow enterprise value. Instead, I get seasoned lawyers fighting proxy battles with pieces of paper.

I myself would settle for someone winding it up and distributing the tatters.


So, did you end up redeeming everything? I did not, because I was preoccupied with more delightful summertime things, and missed the deadline. So now I have to wait to redeem 15% each year for the next 5 years before I can unload this turkey. Such is the cost of my neglect.
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Re: Labour-sponsored venture capital funds

Postby bill2009 » 10 Sep 2011 19:11

RomaneeConti wrote:
bill2009 wrote:
RomaneeConti wrote:I no longer care about getting the "best offer terms". After all the NAV is in tatters now. Instead, I would vote for the BEST MANAGEMENT. By that I mean, the Management who demonstrably are the best in taking new ideas successfully to market. The best Management can screen out the losers and pick up the winners and can help bring the best new products and services to the public. For the current portfolio, the best Management can make a tangible kick-butt influence on the Boards of the companies that are current investees. That would be a win-win-win scenario for the Customer / Business / Investor that I would appreciate.

In the end, I want seasoned business leaders fighting to grow enterprise value. Instead, I get seasoned lawyers fighting proxy battles with pieces of paper.

I myself would settle for someone winding it up and distributing the tatters.


So, did you end up redeeming everything? I did not, because I was preoccupied with more delightful summertime things, and missed the deadline. So now I have to wait to redeem 15% each year for the next 5 years before I can unload this turkey. Such is the cost of my neglect.

I did not. My wife and i both held it and she was even more bitter than i was so we sold hers and held mine. We'll see. The risk by now is trivial and getting smaller.

This way I retain my bitching rights. I still have fantasies of sending John Crow such an eloquent email that he realizes the error of his ways, launches a bid to overthrow the board, and sends me a personal cheque ;)
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Re: Labour-sponsored venture capital funds

Postby SoninlawofGus » 29 Aug 2012 08:16

So, regarding Vengrowth, if I understand the proposal above, on August 31 I can finally redeem 15% of the tiny amount left to redeem. Is that correct? I could not find any more current information on the Covington site -- its seems that they really don't want anyone to know the terms. Also, I've noticed that the tiny amount left has shrunk about 8% in the past month or so (just in time for this redemption, it would seem).

Understanding that funds like this have the right to freeze redemptions, it still amazes me that Vengrowth/Covington were allowed to freeze any redemptions for so long on a penalty-free (to the investor) basis while continuing to collect a sizable MER. In my case, it's been 11 1/2 years since the time of purchase without seeing a penny.
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Re: Labour-sponsored venture capital funds

Postby al42 » 29 Aug 2012 09:30

I was able to redeem 15% of what little is left last week.You should hurry if you plan on doing this as the 31st of August
is the cut off date I think. Meaning you will have to wait until next year if you miss this date.
And you are correct on both counts, them not making it easy and the fund dropping like this just before the redemption date.
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Re: Labour-sponsored venture capital funds

Postby SoninlawofGus » 29 Aug 2012 09:57

Thanks -- it was not clear if Aug 31 referred to the start or end date. I tried to redeem in May and TDW would not let me do so, saying their "system was not ready." I tried again in June, to no avail.
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Re: Labour-sponsored venture capital funds

Postby parvus » 06 Oct 2013 21:49

Last gasp, one supposes:
GrowthWorks Canadian Fund Ltd. ("Canadian Fund") today announced that it has obtained court protection under the Companies' Creditors Arrangement Act ("CCAA") pursuant to an initial order granted by the Ontario Superior Court of Justice (the "Initial Order").

Canadian Fund sought CCAA protection for the ongoing management of Canadian Fund, including the disposition of Canadian Fund's portfolio investments, the refinancing of Canadian Fund's secured payment obligations to Roseway Capital S.a.r.l. ("Roseway") under the Participation Agreement between Canadian Fund and Roseway dated May 28, 2010, as amended (the "Participation Agreement"), and other strategic alternatives, including a potential merger or other business combination. To enable Canadian Fund to maintain normal business operations as the strategic process is implemented, the Initial Order provides a stay of certain creditor claims and the exercise of contractual rights arising out of the CCAA process.

The Initial Order provides Canadian Fund with the necessary protection to continue to pursue the divestment of its investment portfolio with a view to maximizing the return on its assets under the oversight of the Board of Directors of Canadian Fund and with the advice of its advisors.

Wonder what Smelly is doing with his time now.

At any rate, an interesting idea, poorly executed, swamped by management costs and dependent on a sole source of capital: tax breaks.
Wovon man nicht sprechen kann, darüber muß man schweigen — a wit
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Gold Ring
Gold Ring
 
Posts: 9725
Joined: 20 Feb 2005 17:09
Location: Waiting for the real estate meltdown on Rua Açores.

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