Covington Acquisition of VenGrowth and New Generation Biotech (Equity) Funds Successfully Closes
Covington Capital Corporation and the VenGrowth Funds today announced the successful closing of the transaction by which Covington Fund II Inc. acquired the assets of New Generation Biotech (Equity) Fund Inc. (“NGBE) and The VenGrowth Investment Fund Inc., The VenGrowth II Investment Fund Inc., The VenGrowth III Investment Fund Inc., The VenGrowth Advanced Life Sciences Fund Inc., and The VenGrowth Traditional Industries Fund Inc. (collectively the “Funds”).
The acquisition followed overwhelming VenGrowth and NGBE shareholder endorsement of the Covington Offer at the Funds’ respective Special Meetings on August 25, 2011.
“We are extremely pleased with the completion of these acquisitions. The resulting fund will have approximately $360 million in assets with a well diversified portfolio of 50 venture investments,” said Scott Clark, Managing Partner, Covington Capital Corporation.
“The Board of Directors of the VenGrowth Funds was pleased to present and recommend the Covington Offer to acquire the VenGrowth Funds. The Covington transaction provides new and expanded redemption options, improves the overall financial position, lowers overall costs and allows greater ability to provide follow-on funding,” added John Crow, Chair of the Board of Directors of the VenGrowth Funds.
Shareholders of the VenGrowth Funds and NGBE who did not choose to redeem their shares, will now become shareholders of Covington Fund II based on an exchange of their existing shares for Covington Fund shares. Specifics of shareholders’ particular exchange ratio will be made available shortly at www.vengrowth.com and www.covingtonfunds.com.
For those shareholders who submitted redemption requests on or before the deadline of August 23, 2011, processing of these requests will commence next week. Share purchases and redemptions of Covington Fund II, which normally occur on the last business day of each week will not occur on Friday September 2, 2011 and are expected to resume on Friday September 9, 2011 to allow the Covington Fund II administrator to process the transfer of Class A shares of Covington Fund II to each of the former shareholders of the VenGrowth Funds and NGBE.
Covington Fund II shares issued to former shareholders of certain funds are subject to permitted redemption schedules as set forth in the Information Circular of Fund II dated July 12, 2011 (available at www.covingtonfunds.com). For former VenGrowth shareholders, questions regarding redemptions, fees, and other aspects of the Covington Fund II shares should be directed to Client Services at 1-800-461-4814. For former NGBE shareholders, enquires should be directed to Client Services at 1-888-746-4751.
About Covington Group of Funds
Established in 1994, Covington Capital Corporation is one of Canada’s largest providers of venture capital investment funds. Managing close to $400 million in assets, Covington provides Canadians with the ability to access venture capital investment opportunities via their suite of retail venture capital product offerings. www.covingtonfunds.com.
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