Crocus Hearing Set for September 5

In response to the Notice of Motion filed in Court of Queen's Bench on July 6 requesting that the MFL be allowed to call a meeting of Crocus Investment Fund shareholders, a hearing has now been scheduled for Tuesday, September 5, at 10 a.m. The MFL had wanted the hearing to be held sooner, but the receiver and/or their lawyers are unavailable in July.

The MFL has sent the receiver a letter suggesting that he should not sell off the assets of Crocus in a piecemeal way until the court has ruled on the MFL's motion to allow the shareholders of Crocus to vote on the GrowthWorks offer. Otherwise, the shareholders best interests could be prejudiced.

"Deloitte & Touche, the court-appointed receiver, has kept these people hanging in limbo for too long," said MFL President Darlene Dziewit. "They have a right to hear details of an offer to purchase the Fund's remaining assets by GrowthWorks, an experienced investment fund manager. They also have a right to vote on accepting or rejecting the offer. Crocus shareholders have a right to be heard and they have indicated they want a shareholders meeting for that purpose."

The Notice of Motion asks that the receiver be directed to release a list of shareholders to the MFL or a court-appointed representative of shareholders. It asks the court to reinstate the requirement for court approval of any sale of Crocus Fund assets by the Receiver, with a threshold of $1 million or more. And finally, it asks that the Receiver or the court-appointed shareholder representative be authorized to call a shareholders meeting.

"There are no encumbrances left to justify not letting this process unfold as it should," said Dziewit. "We fear that the longer this drags on without the shareholders wishes being heard, the less likely it is that they will receive any worthwhile return on their investment.

"The Receiver is already on the record as saying he intends to sell off much of the Fund in the near future. Enough is enough. Let the shareholders be heard."