Released on February 20, 2006
As RRSP planning for the 2005 tax season comes to a close, the province's Labour Sponsored Venture Capital Corporation (LSVCC) fund managers are looking forward to building on two robust years of investment growth.Saskatchewan residents continued to provide needed capital for local businesses by investing $28 million last year in the two Saskatchewan LSVCC funds, SaskWorks Ventures Fund Inc. of Regina and Golden Opportunities Fund of Saskatoon. That was a 30 per cent increase over the monies invested in 2004, and a 50 per cent increase over the amount recorded in 2003.
"Saskatchewan people are increasingly realizing that one of the best ways to build our province and create jobs is by investing in homegrown businesses through vehicles like venture capital funds," Industry and Resources Minister Eric Cline said. "These funds also provide a great mechanism for people to reduce their personal taxes while promoting economic growth."
The province's Invest in Saskatchewan LSVCC program provides individual investors with up to 35 per cent in tax credits and an RRSP deduction. Funds raised are invested in Saskatchewan companies to help them expand their operations in the province.
Golden Opportunities Fund Inc. CEO Grant Kook said performance in 2005 was excellent with $18 million raised from investors. He added the fund is finding many different business opportunities in the province, including new ventures such as the ethanol industry, oil and gas and value-added products.
"The increasing portfolio of new investments in these sectors confirms our ability to identify and partner with growth companies," Kook said.
Performance for SaskWorks Ventures Fund Inc. was equally strong in 2005.
"As SaskWorks enters its sixth year of operations, we continue to see a multitude of high quality investment opportunities," SaskWorks Ventures Fund Inc. CEO Randy Beattie said. "Additionally, the fund's portfolio has matured where we are starting to realize our exits of earlier investments. The combination of continued strong deal flow and a mature investment portfolio look promising for us and our shareholders."
From 1999 to 2005, Saskatchewan residents invested $100 million in the LSVCC program and saved more than $35 million on their personal income taxes. The two funds, in turn, have invested more than $82 million in 72 different companies across the province.
Investors should contact their financial planners to get more information and purchase LSVCC shares. The shares cannot be purchased directly from the fund managers.
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For More Information, Contact:
| Bob Ellis Industry and Resources Regina Phone: (306) 787-1691 |