VentureLink Innovation Fund Inc.

 



VentureLink Innovation Fund Inc. Honours in excess of 30% of NAV Shareholder Redemptions for Fiscal Year 2019 and Announces Closing Again

VentureLink Innovation Fund Inc. (the Fund”) announced on January 10th, 2020 that year to date it has honoured approximately $8 million in shareholder redemption requests.  Having honoured those redemption requests, the Fund has processed shareholder redemptions during its fiscal year 2019 in excess of 30% of its net asset value as of December 31, 2019, is suspending further redemptions and will not be accepting further redemption requests at this time.

All orders placed during the week ending 4:00 pm January 10, 2020 will be honoured in full, at 100% of the order placed for each individual order and will settle over the next five business days.  All trades placed after 4pm on January 10, 2020 will be rejected until the Fund reopens again for redemptions.

Under the terms of the Fund’s prospectus, the Fund is allowed to halt redemptions once the 20% of prior year ending NAV threshold has been met. The Board has taken this decision to ensure the Fund continues to operate in an efficient manner. The Board concluded that this suspension is required to maximize returns for all shareholders and is in the best interests of the Fund.  The decision follows careful consideration by the Board of the various alternatives available to the Fund.

The Fund expects to re-open for redemptions on or about January 4, 2021 at which time the Fund anticipates that it will resume honouring redemptions of at least 20% of NAV of the Fund as at December 31, 2020, as laid out in the Fund’s prospectus disclosure. If any material new divestitures of the Fund’s holdings occur during the 2020 year, there is a strong likelihood that the Fund will re-open again sooner than January 4, 2021.  The Fund will press release and communicate at least four weeks in advance of any such re-opening.  Specific details on all such future redemption opportunities will be released at later dates and will be posted to the Fund’s website at www.venturelinkfunds.com

The Fund has previously disclosed its plans to divest of all of its holdings and to wind up thereafter. The Fund continues to implement this plan. The Fund is planning to honour annual redemptions of at least 20% of opening Net Asset Value in each calendar year until such time as the Fund has divested of all of its holdings and it can wind up.

For Further Information Contact:

Geoff Horton – Managing Partner
VL Advisors Inc./VentureLink Innovation Fund Inc.
416-681-6372
ghorton@venturelinkfunds.com

VentureLink Innovation Fund Inc. Provides Disclosure on Fund Price Volatility

On January 2, 2020 VL Advisors Inc. (“VL Advisors” or the “Manager”) provided some further disclosure on recent NAVPS movement and possible future NAVPS volatility of VentureLink Innovation Fund Inc. (the “Fund”).

At the beginning of December 2019, the Fund’s four largest holdings represented 61% of the total Fund NAV of $28.6 million. Negative developments related to the expected sale of a portfolio company and the operations of a second portfolio company, along with some other small adjustments, resulted in a reduction of NAV of approximately $3.5 million during the month of December.

The Manager is actively working with these four portfolio companies to realize on its investments before the end of 2020 either through the en-bloc sale of the entire portfolio company or the sale of the Fund’s four minority positions collectively in what is typically known as a secondary sale.

Successfully completed transactions could have material impacts on NAV going forward, as could the failure to find or close such sales. As the Fund gets closer to the completion of its planned divestiture of all of its investments, the concentration of individual holdings as a percentage of NAV increases, the diversity of the holdings decreases, and the Fund’s NAVPS may experience more volatility. 

The Fund continues to follow the valuation policies and procedures that it established and outlined in its prospectus while it was for sale under that prospectus, and that it continues to outline and disclose in Annual Information Form, the most recent of which was issued March 11, 2019 and is available on SEDAR.com. 

The Manager had previously announced on December 9, 2019 that the Fund would be re-opening to honour redemptions beginning on January 6, 2020 for trades to be priced and trade dated January 10, 2020. This announcement does not impact those plans, and the re-opening will occur as disclosed.

 

 

Customer Service:
1-800-792-9355

VL Advisors Inc.

3 Church Street, Suite 602
Toronto, Ontario M5E 1M2

Toll Free:     800-253-1043
Phone:         416-681-6676
Fax:             416-681-6661
Email:           info@venturelinkfunds.com

 

Our Fund

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.

VentureLink Innovation Fund

(Note - The Prospectus for VentureLink Innovation Fund Inc. was not renewed and the Fund has ceased taking purchase orders as of October 17th, 2012.)