VentureLink Innovation Fund Inc.
VentureLink Innovation Fund Inc. Temporarily Halts Redemptions
VentureLink Innovation Fund Inc. has announced it has halted redemptions of the Fund for the remainder of fiscal year 2016 (Fiscal years ending December 31). All redemption requests processed prior to the close of business on August 11, 2016 have been honoured. Until the Fund reopens, Shareholders cannot redeem their position.
As per the Fund’s prospectus, the Fund has the right to suspend redemptions in any given fiscal year once it has honoured redemptions in excess of 20% of the Fund’s opening Net Asset Value as at the beginning of its fiscal year. The Fund has met that level of redemptions for fiscal year 2016.
The Fund plans to reopen for redemptions on or about the first business day of its subsequent 2017 fiscal year, on or about January 3, 2017. At that time the Fund anticipates that it will resume honouring redemptions up to at least 20% of the NAV of the Fund in the 2017 financial year, again consistent with the requirements laid out in the Fund’s prospectus disclosure. The frequency of pricing and settling of Fund trades will shift to weekly from daily starting at the beginning of fiscal 2017 as well.
- Upon reopening, redemptions will continue to be honoured in the order in which they are received, once re-opened for trading. Trades placed as of this halt date will be rejected until the Fund re-opens for redemptions. HOWEVER, beginning in 2017, if the Board decides to set 20% or some other higher targeted percentage redemption level for the year, if in any weekly period the taregeted percentage is exceeded in that week, all orders will be honoured on a proportionate or pro-rata basis, such that redemption orders will receive not a full redemption but a partial redemption representing their portion of the amount available for redemption split evenly amongst all other shares that tried to redeem in that period.
The fair value of the Fund’s portfolio will continue to be determined ongoing and there are no anticipated changes to the value of its private investments as a result of this decision.
The Board of Directors of the Fund will notify the public well in advance of its intention to reopen to redemptions along with such other details necessary to process those future redemptions so as to provide shareholders ample time to submit their redemption requests to the Fund. The Fund’s web-site, www.venturelinkfunds.com will provide ongoing details on the process.
If you have further questions, you may also call our customer service line at 1-800-253-1043 or call the Manager directly: Geoff Horton (416)681-6372 or Jim Whitaker (416) 681-6370.
VL Advisors Inc.
3 Church Street, Suite 602
Toronto, Ontario M5E 1M2
Toll Free: 800-253-1043
VentureLink Innovation Fund’s objective is to realize long-term capital appreciation by making debt and equity investments in a diversified portfolio of securities in eligible Canadian businesses and by investing in reserves.
The Fund reduces risk through diversification in various investments, including debt-related securities (such as debentures and promissory notes), as well as equity holdings.
(Note - The Prospectus for VentureLink Innovation Fund Inc. was not renewed and the Fund has ceased taking purchase orders as of October 17th, 2012.)