What is the new policy?
Shareholders of the VenGrowth Investment Fund (“VenGrowth I”) and the VenGrowth II Investment Fund (“VenGrowth II”) no longer have the option to redeem their investments. Instead, they will receive their investment returns in the form of annual distribution payments from the Funds.
When will the distribution be paid?
The VenGrowth Investment Fund Inc. and The VenGrowth II Investment Fund Inc. (the “Funds”) announced that they have completed their continuance to the British Columbia Business Corporations Act. This is further to the Funds’ recent announcement that shareholders had approved the continuance.
The Funds’ Boards have approved dividend payments in the amount of:
- VenGrowth I = $0.141 per share
- VenGrowth II = $0.408 per share
The dividends were paid on December 18, 2009 to shareholders of record as of December 14, 2009.
In future years, the Board of Directors for each Fund will begin to determine the surplus cash (see Q&A) available to be distributed as a dividend to all shareholders at the end of each fiscal year. The final determination amount will be decided after the annual audit is complete, which is expected to occur within three months of each year-end, or November. The Board of Directors will have the discretion to make dividend distributions more than once a year, if warranted.
The dividend will be paid to each shareholder’s account on a pro rata basis. This means that the total amount received is related to the number of shares owned, regardless of the purchase date. There are no forms to complete to participate in the distribution. There will be no tax credit clawback on this dividend, regardless of the length of time a shareholder has held their investment. All shareholders will receive the dividend on the same date. Should you choose to transfer the cash out at a later date there will be no transfer fees.
How will the distribution be paid?
- Client-name Registered: the VenGrowth I Fund and VenGrowth II Fund distribution payments will be paid as a cash dividend into the account where the VenGrowth shares are currently held.
- Client-name Non-registered: the VenGrowth I Fund and VenGrowth II Fund distribution payments will be made in the form of a cheque mailed to the shareholder.
- Nominee or Intermediary: the VenGrowth I Fund and VenGrowth II Fund distribution payments will be paid as a cash dividend to the dealer firm for deposit into shareholders’ accounts.
Is VenGrowth exploring alternative liquidity options?
Yes, VenGrowth Asset Management continues to research ways in which to provide investors with liquidity for their shares. We are determined to leave no stone unturned in our effort to provide investors with alternative liquidity options.
How long will it take to wind down VG I & II?
We expect to continue to make distributions each year until the Funds are eventually wound down and all the proceeds from exits are returned to shareholders. Our best estimate in terms of the time required to see this process through to completion is:
- VenGrowth I 2-4 years
- VenGrowth II 3-5 years
More information
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