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GrowthWorks Canadian Fund Ltd. Provides Update on Sale and Investor Solicitation Process and Default Status Pursuant to National Policy 12-203

TORONTO, Dec. 20, 2013 /CNW/ - GrowthWorks Canadian Fund Ltd. (the "Fund") today announced that a special committee of its board of directors (the "Special Committee") has authorized commencement of Phase II of the Sale and Investor Solicitation Process ("SISP") to be undertaken pursuant to the proceedings commenced by the Fund under the Companies' Creditors Arrangement Act (Canada) (the "CCAA Proceedings").

During Phase I of the SISP, the Fund's financial advisor, CCC Investment Banking ("CCC"), solicited and received non-binding letters of intent ("LOIs") from several interested parties to acquire or to invest in the Fund.  In consultation with the Fund and CCC, FTI Consulting Canada Inc. (the "Monitor"), in its capacity as the court-appointed monitor of the Fund in the CCAA Proceedings, determined that multiple LOIs were qualified for inclusion in Phase II.  As a result, CCC recommended and the Monitor consented to the Special Committee authorizing the commencement of Phase II of the SISP.

The Fund, with the assistance of CCC, will now make additional information available to parties invited to Phase II and will then seek submission of binding proposals regarding a transaction with the Fund.  Phase II is expected to require a period of several weeks to complete and there can be no assurance that any transaction may occur.

"We are pleased with the level of interest that surfaced in Phase I," said C. Ian Ross, Chairman and Interim CEO of the Fund.  "We are optimistic about Phase II of the process and we will continue to work with these parties with a view to concluding a transaction for the benefit of all of the Fund's stakeholders."

The Fund is providing a default status report in accordance with the alternative information guidelines set out in National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203").  On December 3, 2013, the Fund announced (the "Default Announcement") that it did not file its audited annual financial statements and related management report of fund performance for the year ended August 31, 2013 under National Instrument 81-106 Investment Fund Continuous Disclosure (collectively, the "Financial Documents") by November 29, 2013, the deadline prescribed by securities legislation.  There have been no material changes to the information contained in the Default Announcement or any other changes required to be disclosed under NP 12-203.  The Fund still intends to file the Financial Documents and other applicable continuous disclosure documents as soon as is commercially reasonable, or as required by the Ontario Superior Court of Justice pursuant to the CCAA Proceedings.

Forward-Looking Information

This press release contains forward looking statements, including statements with respect to the CCAA Proceedings. These forward-looking statements reflect the Fund's current views and are based on certain assumptions, including assumptions as to future operating conditions and courses of action, sale or refinancing alternatives, economic conditions and other factors the Fund believes are appropriate. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements, including the risk that a disposition of the Fund's portfolio investments or refinancing or other strategic alternatives may not be available on terms acceptable to the Fund, or at all, or that any such disposition or other strategic alternative would yield proceeds sufficient to satisfy in full the Fund's payment obligations to Roseway Capital S.a.r.l., the Fund's other creditors or any distribution to the Fund's shareholders; the risk that litigation or defence proceedings involving claims by the former manager of the Fund or other third parties against the Fund may involve substantial expense and, if successful, could require the Fund to pay substantial damages; and those risks and uncertainties disclosed in the Fund's most recently filed prospectus and other regulatory filings posted on SEDAR at www.sedar.com. These risks and uncertainties may cause actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements.  Unless required by law, the Fund does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or results or other factors.

SOURCE GrowthWorks Canadian Fund Ltd.

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