The board of directors of Lawrence Enterprise Fund Inc., a Toronto-based labour-sponsored investment fund, said Monday that it is in the best interest of all Class A shareholders to continue to suspend redemptions.<\/p>\n
The fund announced Monday the granting of a further order that extends the suspension to July 31.<\/p>\n
The fund obtained an initial order in to suspend Class A share redemptions on Jan. 13, 2013. A second order extended the effect of the initial order to Jan. 31, 2014.<\/p>\n
The board blames the current economic climate for the continuing suspension.<\/p>\n
In a statement the board said “The fund’s portfolio of venture investments cannot be exited in the current market as a result of the lack of IPOs and mergers for the past several years.”<\/p>\n
The board said redemptions would pressure the fund “to liquidate its investments in a \u2018fire sale’ manner that would cause a significant further reduction in the value of the portfolio investments to the fund and the net asset value of the Class A shares.”<\/p>\n
The board and the fund’s manager, Cambridge Asset Management Inc., believe that suspension “will continue to prevent any short and mid-term liquidity challenges, help achieve optimal exit values for maturing portfolio companies and ensure that proceeds generated from those exits are returned to all shareholders.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Weak economy impacting exit values of vencap investments<\/p>\n","protected":false},"author":38954,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2315],"tags":[2538],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/258143"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/38954"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=258143"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/258143\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=258143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=258143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=258143"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=258143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}