GrowthWorks considering Crocus buyout

GrowthWorks says it has entered into discussions related to a possible merger with troubled Winnipeg-based labour fund Crocus. In a release late Tuesday, Vancouver-based GrowthWorks said it had been invited to make a presentation to Crocus Investment Fund shareholders on March 8, 2006.

More details will be released following the meeting, GrowthWorks said.

“GrowthWorks has extensive experience in turning problem funds into profitable funds,” said David Levi, president and CEO of GrowthWorks. “We would like to have the opportunity to use our expertise to explore further options for shareholders of Crocus.”

Last fall, a Manitoba judge approved receiver Deloitte & Touche’s plan to sell off the assets of the Crocus Investment Fund over a five-year period.

The labour fund halted trading in December, 2004 and announced a portfolio review. The Manitoba Securities Commission later alleged that the Crocus board “routinely and consistently” failed to determine the fair value of the common shares of the fund.

Crocus shares peaked at $15 in 2000, but had plunged to around the $7 mark when trading was halted. Approximately 33,000 investors sank nearly $200 million into the fund. Deloitte & Touche was appointed receiver last summer. The RCMP also launched a criminal investigation into the case.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com