Let the Shareholders Decide

A meeting of Crocus shareholders on March 8 heard details of an offer made by Vancouver-based labour-sponsored investment fund management company GrowthWorks to take over Crocus and the management of its investment fund. The Manitoba Federation of Labour is convinced that the best people to decide the future of the Crocus Investment Fund are the fund's shareholders. For that reason, it is supporting the call for a shareholders' meeting.

MFL President Darlene Dziewit said, "It is important that Crocus shareholders play the principle role in deciding what happens to their investments and that they be allowed to take the necessary steps to maximize their financial return. This should not be left up to the receiver appointed by the court who, quite frankly, is only interested in winding the fund down in bits and pieces over the next five years. The immediate task is to hold a larger shareholder meeting to hear details of the GrowthWorks proposal and to vote on whether or not to accept it."

From the outset of Crocus being forced into receivership, the MFL has often been the lone voice advocating on behalf of the 33,000 Crocus shareholders. It has consistently called for a shareholders meeting in order that they can decide for themselves how to proceed with the Fund.

There is now a real offer on the table by GrowthWorks, one of the largest venture capital fund managers in Canada. The GrowthWorks offer will put immediate cash into the pockets of shareholders. There are also options which individual shareholders can choose to access. Monies can be converted to GrowthWorks Canada One shares or people will be allowed to cash out their entire investment.

It is the MFL's position that decisions must be made by those affected, in a democratic way. In the case of Crocus, in order to force a vote, five per cent of the shareholders, or roughly 2000 individuals must request one.

Dziewit said, "In our opinion, the GrowthWorks plan is the only one that is dedicated to increasing share value to acceptable levels. The strategy put forward by the receiver only guarantees large financial losses for the nearly 34,000 Manitobans who own Crocus shares. GrowthWorks, headed by David Levi, is an industry leader in the management of Canada's Labour Sponsored Investment Funds. We believe his plan is the best one on the horizon right now."

All Crocus shareholders are urged to help the MFL force the Crocus receiver to do the right thing and hold a meeting. We are asking you to download, print and distribute the Requisition for a Meeting form to any Crocus investors that you know. Have them sign the form and return it to the address or fax number on the form. If you prefer, you can call the MFL office at (204) 947-1400 and a Requisition for a Meeting form will be sent to you.

The MFL is also operating an office on the main floor of the Union Centre to receive "Requisition For Meeting" forms that have been filled out by Crocus Shareholders. The office is in Room 104, 275 Broadway. The office will be open to receive requisitions from 5 p.m. to 9 p.m., on Tuesday evening.

MFL President Darlene Dziewit said, "It's important that we make the process easy, so Crocus Shareholders can drop their signed forms off on the way to or from work, or during the day."

By signing this requisition form, shareholders can give themselves the opportunity to decide their own future. The Crocus receiver will be in court this Wednesday, March 29, and the MFL would like to have the signed Requisition for Meeting forms at that time.

GrowthWorks is a leading venture fund manager in Canada with extensive experience and success in managing labour sponsored investment funds. Details of the proposed a merger through the purchase of Crocus assets are available in PDF format. There is also a brochure providing background information on GrowthWorks.