News Release: Working Opportunity Fund Provides Update on Commercialization Series and Update on Scheduling of Annual General Meeting
Working Opportunity Fund (EVCC) Ltd. (“WOF” or the “Fund”) announces the declaration of a $1.7 million dividend for the Fund’s Commercialization Series. This dividend represents over 60% of Commercialization Series’ current pricing net asset value.
As reported by the Fund on July 3, 2020, the Fund declared a dividend of $3.8 million for the Commercialization Series and reported that the Fund’s manager, PenderFund Capital Management Ltd. (the “Manager”) would continue to seek to monetize the series’ remaining private venture investments. Since that time, the Fund has completed exits from two private venture investments in the Commercialization Series’ portfolio, enabling the payment of the additional $1.7 million dividend.
The Board is of the view that treating all shareholders of Commercialization Series equally is paramount and to this end the Fund is providing liquidity through dividends and redemptions remain closed. The Fund continues to review additional strategic options for Commercialization Series, as well as options to further reduce the operating costs, maximize value and generate liquidity from the remaining investments.
The pricing net asset value (“NAV”) of Commercialization Series is $2.6 million. Following payment of the $1.7 million dividend, NAV will be $0.9 million which includes $0.5 million of private venture investments. The payment of the current $1.7 million dividend represents approximately $1.70 per share. Following payment of the dividend, the remaining value of Commercialization Series represents approximately $0.95 per share.
The above information applies to the Fund’s Commercialization Series. The following table sets out the fund codes of Commercialization Series.
|WOF – Commercialization Series||WOF 104, 105|
Scheduling of AGM
The BC Registrar of Companies announced earlier this year that it would grant a 6-month extension for corporations who wish to delay their annual general meeting (“AGM”) due to matters arising from the COVID-19 pandemic. With the challenges and restrictions related to COVID-19, the Fund’s Board determined that postponing the AGM would be in the best interest of its shareholders and the Fund obtained an extension of six months. The Fund plans to hold its annual meeting of shareholders for the year 2020 on or before June 30, 2021.
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Forward Looking Statements. This news release contains forward looking statements which primarily relate to assessments of the liquidity position of Commercialization Series, timing of, ability to complete, and amount of proceeds from, exits from the venture investment portfolio, future payment of dividend(s) on Commercialization Series, the decision of the Fund to pay dividend(s) and close redemptions ensuring that all Commercialization Series shareholders are treated equally, the ability to meet future operating expenses, further reductions in operating costs and the on-going review of strategic options. All forward looking statements are based on management’s current beliefs and assumptions on a range of factors related to these factors which are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. No assurance can be given as to the timing, amount or occurrence of any future cash dividends to Commercialization Series shareholders or the ability to fund ongoing operations. There can be no guarantee as to the outcome of the on-going review of future liquidity options that may be available for Commercialization Series. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Neither the Fund nor Pender assumes any obligation to update any forward-looking statements made in this release. Data provided on cash back received assumes that tax credits were fully claimed and allowed at the same time as the purchase was made and the purchase occurred within a registered retirement savings plan.