Covington Venture Fund Receives Shareholder Approval for Consolidation of Class A Shares Series I, II, III Assets with Class A Shares Series IV Assets and Class A Share Series V Assets
Covington Capital Corporation, the manager of Covington Venture Fund Inc. (the “Fund”) announced that at the annual and special meeting of shareholders of the Fund completed on December 16, 2011, shareholders passed a special resolution approving the consolidation of the pool of assets owned for holders of Class A Shares Series I, II, III (“Series I, II, III Assets”) with the pool of assets owned for holders of Class A Shares Series IV (the “Series IV Assets”) and the pool of assets owned for holders of Class A Shares Series V (“the “Series V Assets”).
The consolidation remains subject to the necessary regulatory approvals, which are expected to be received shortly. Assuming those regulatory approvals are received, the consolidation will be effective December 23, 2011. The resulting consolidation of the Series I, II, III Assets, the Series IV Assets and the Series V Assets will see combined assets of those five series of Class A Shares the Fund result in a larger pool of assets currently amounting to approximately $44 million. Articles amendment of the Fund are expected to be filed on December 23, 2011 in order to amend certain share provisions relating to the Class A Shares, Series I, II, III, Class A Shares Series IV and Class A Shares Series V of the Fund and effect the asset consolidation.
Aimed at reducing regulatory costs for compiling and reporting financial results, the benefits of the consolidation include: a reduction in the operating costs for shareholders of the first five series of Class A Shares, improved liquidity for those shareholders resulting from a stronger cash position, an improved competitive position from a larger asset base, and the ability to better support the investment objective of each of those five series of shares.
About Covington Group of Funds
Founded in 1995, Covington Capital Corporation (www.covingtonfunds.com) is one of Canada’s largest and most experienced venture capital fund providers. Managing approximately $400 million in venture capital assets on behalf of institutional and retail investors, Covington invests in small-and-medium businesses throughout many industry sectors. Covington Capital Corporation is headquartered in Toronto, Ontario.
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