News Article
December 22, 2008The B.E.S.T. Discoveries Fund Inc. Suspends Redemptions and Subscriptions
THE
BUSINESS, ENGINEERING, SCIENCE & TECHNOLOGY DISCOVERIES FUND INC. suspends
redemptions and subscriptions
TORONTO, ONTARIO, DECEMBER 19, 2008
- The
Business, Engineering, Science & Technology Discoveries Fund Inc. (the
“Fund”) announced today that it has halted redemptions and subscriptions of shares
of the Fund while its board of directors (the “Board of Directors”) explores
strategic options to maximize returns for all of the Fund’s shareholders.
This
decision follows careful consideration by the Board of Directors regarding the
best interests of all of the Fund’s shareholders, the Fund’s current liquidity
situation, the present market conditions and the anticipated requests for
redemptions by holders of the Fund’s Class A shares. The Independent Review Committee of the Fund
has determined that the decision to halt redemptions and subscriptions of the
shares of the Fund achieves a fair and reasonable result for the Fund.
The
Fund, similar to other mutual funds, has been experiencing an increase in
redemption requests and anticipates it will continue to do so. The Board of Directors believes that it is in
the best interest of all the Fund’s shareholders to suspend redemptions and
subscriptions in order to ensure all shareholders are treated fairly.
Following
the decision in 2005 to phase out the Ontario provincial tax credit for
investors of labour sponsored investment funds, the Fund has experienced declining
sales and, consequently, requests for redemptions have been satisfied mostly
from sales of the Fund’s investments. As
a result of continuing adverse market conditions, despite what the Fund believes
to be a portfolio of high quality companies, it is difficult for management of
the Fund to exit these venture investments to generate enough cash to fund the
anticipated redemption requests in a manner that would be in the best interest
of all shareholders.
The
Board of Directors will continue to explore strategic options for the Fund to
optimize returns to shareholders in an orderly manner, which may be subject to
regulatory and/or shareholder approvals.
The Board of Directors expects to call a meeting of the shareholders in
the first half of 2009. During the
suspension, the Fund will continue to price its net asset value per share
weekly.
About The Business, Engineering, Science
& Technology Discoveries Fund Inc.
The
Business, Engineering, Science & Technology Discoveries Fund Inc.,
established in 1996 is registered as a labour sponsored investment fund
corporation in Ontario. The Fund’s
investment focus is primarily on companies capitalizing on the innovative uses
of engineering, science and technology.
The Fund invests in eligible companies that are in differing stages of
development in a variety of high growth industries.
Certain statements contained in this press
release may include forward-looking information with respect to the Fund’s
operations and future financial results.
Such statements are based on current expectations, are subject to a
number of uncertainties and risks, and actual results may differ materially
from those contained in such statements.
Further information can be found in the disclosure documents filed by
the Fund at www.sedar.com.
For more
information please contact:
The Business, Engineering, Science & Technology
Discoveries Fund Inc.
416-203-7331 ext. 228 / 1-800-795-BEST
info@bestfunds.ca
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