CMDF first announced a proposed merger GrowthWorks Canadian Fund on Nov. 7.

The suspension has been extended for the period ending April 30, 2009, during which time redemptions of Class A shares of CMDF will only be permitted on the terms and subject to the conditions normally applicable for hardship exemptions such as the death of the shareholder.

The proposed merger is subject to a number of conditions including, among other conditions, regulatory approvals, CMDF shareholder approval, final approval of the boards of directors of both funds and the negotiation of final definitive agreements.

There can be no assurance that a merger transaction will ultimately be completed, CMDF says

The fund expects to hold an annual and special meeting of its shareholders on Feb. 18, 2009 and will mail the associated meeting information and materials to its shareholders in advance of that meeting.

CMDF is one of Canada’s most mature health sciences retail venture capital funds, with approximately $120 million in managed assets. Established in 1994, CMDF has venture capital investments in approximately 35 companies involved in health sciences, biotechnology, diagnostics, medical devices, drug discovery and development, health care delivery services and e-health.