Released on June 20, 2011
Saskatchewan's highly successful provincial Labour-Sponsored Venture Capital Corporations (LSVCC) proved to be increasingly popular with investors, who purchased more than $76 million in funds this year - a 27 per cent increase from the previous year.
LSVCC shares can be purchased through the two leading funds, Golden Opportunities Fund Inc. and SaskWorks Venture Fund Inc. This capital is in turn invested into small- and medium-sized Saskatchewan businesses to encourage growth and job creation.
"On top of a substantial tax credit, an LSVCC investment is an opportunity for people in Saskatchewan to support local businesses which are the backbone of our provincial economy," Enterprise Minister Jeremy Harrison said. "Fund sales continue to increase, due in part to strong management and to the Saskatchewan government doubling the annual cap on provincially registered funds from $25 million to $50 million per fund. Increasing the fund cap was recommended by the Enterprise Saskatchewan board in 2008. This is boosting economic growth by encouraging additional venture capital for business growth and development."
"SaskWorks had another record-setting fund raising season this year thanks to our shareholders and the province's decision to raise the annual fund raising cap for the Fund," SaskWorks President and CEO Randy Beattie said. "Investing in SaskWorks allows Saskatchewan residents to diversify their portfolio with companies that they would otherwise not have access to, small- and medium-sized, privately owned Saskatchewan businesses."
"Saskatchewan's first LSVCC continues to uphold the highest operating standards and financial disclosure in the industry which resulted in another positive increase in fund sales of 20 per cent over the previous year," Golden Opportunities President and CEO Grant Kook said. "The government's support has created a very positive investment climate. Golden Opportunities Fund's portfolio ranging from oil and gas, health care facilities to leading knowledge-based innovation, is putting Saskatchewan on the world stage."
The LSVCC funds and the legislation fall under the Invest in Saskatchewan Program, which provides a tax incentive to promote and encourage investment in registered pool and employee funds. On the first $5,000 invested, investors are eligible to receive federal and provincial tax credits that total 35 per cent. The Employee Investment Program also provides the opportunity for employees to invest in the company they work for and receive the same tax credits.
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For more information, contact:
Jamie Shanks
Enterprise Saskatchewan
Regina
Phone: 306-798-0503
Email: jamie.shanks@enterprisesask.ca