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NEWS RELEASE |
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| April 5, 2005 The Manitoba Securities Commission Commences Proceedings In Respect of the Crocus Investment Fund, Charles Curtis, Peter Olfert, Waldron (Wally) Fox-Decent, Lea Baturin, Albert Beal, Ron Waugh, Diane Beresford, Sylvia Farley, Robert Hilliard and Robert Ziegler Winnipeg, Manitoba – The Manitoba Securities Commission (MSC) today issued a Notice of Hearing and Statement of Allegations in respect of the Crocus Investment Fund and certain current and past members of the Board of Directors. The hearing will be held on May 6th, 2005. MSC Staff allege the procedures set out in the Fund’s prospectus filed with the MSC dated January 21, 2004 and the amendment to that prospectus dated October 14, 2004, were not followed with respect to the pricing of Class A shares of Crocus. In addition, the allegations are based on an alleged failure of the Board of Directors to act in the public interest on matters involving the process used to value Crocus’s investment portfolio. In addition, there are also allegations that certain members of the Board of Directors failed to follow the procedure for pricing Class A shares that is set out in the prospectus and in The Crocus Investment Fund Act. "The issuance of the Notice of Hearing is an important first step required to resolve what staff allege have been deficiencies in the corporate governance of Crocus" said Douglas Brown, Director of Legal & Enforcement. "Commission staff continues to investigate the past activities of Crocus and looks forward to the opportunity to review both the independent reports sought by Crocus and the report of the Auditor General’s office. However, it is important that the interests of Crocus shareholders be protected by moving as quickly as possible to deal with the matters that led to the decision to stop sales and redemptions of Crocus shares on December 10, 2004". The Notice of Hearing and Statement of Allegations are available on the MSC’s website at www.msc.gov.mb.ca. Available for Comment
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