COVINGTON FUND II INC. ANNOUNCES THE SALE OF THE REMAINING HOLDINGS OF ITS RISK PORTFOLIO

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TORONTO, August 30, 2022 /CNW/ – Covington Fund II Inc. (the “Fund”) announced today that it has entered into a binding asset purchase agreement which includes the sale of the Fund’s remaining venture capital interests. The En-Bloc sale is in exchange for $7,000,000 in cash to an affiliate of North Sky Capital, a secondary fund based in Wayzata, Minn..

The Fund has made efforts over the past several years to optimize the individual exit values ​​of each of the remaining investments in the venture capital portfolio and to liquidate the Fund after returning the net proceeds to the shareholders of the Fund.

This process has been slowed by the impact of the Covid 19 pandemic. Earlier this year, as part of its continued efforts to achieve near-term liquidation, the Fund retained the services of an independent adviser to seek the sale of individual participations or for the sale of the remaining participations en bloc. The Advisor markets and researches interested parties and advises the Board of Directors based on the proposals submitted. After completing an evaluation of the proposals, the Board of Directors has determined that this transaction is the best outcome for shareholders as it will enable the distribution of net assets to shareholders over the coming month(s) relative to the continued from the sale of individual minority investments over time, which proved difficult to achieve in a timely manner.

Maximizing shareholder value during the liquidation process has been the primary objective of the Fund’s Board of Directors. The Board of Directors has approved the sale of the remaining interests to North Sky after determining that the sale is both fair from a financial perspective and in the best interests of the Fund and its shareholders.

The Fund will now move forward with the completion of the liquidation process. The special resolution passed by shareholders earlier this year will allow for the distribution of existing cash held by the Fund along with the net proceeds of the sale. The distribution will be made via the redemption by the Fund of all Class A Shares which will take place automatically with no further action required on the part of the shareholder. The redemption process should take place before the end of the calendar year.

About the Covington Group of Funds

Covington Group of Funds has managed several worker-sponsored investment funds for individual investors across Ontario including Covington Fund I, Covington Fund II, Covington Strategic Capital Fund, New Generation Biotech (Equity) Fund Inc. and Covington Venture Fund Inc.

For more information, please visit www.covingtonfunds.com.

About North Sky Capital

North Sky Capital is a pioneer in impact investing in United States. Now in its 23rd year and investing in its 10th impact fund, North Sky has deployed over $1.2 billion through more than 125 impact investments on behalf of its various impact funds. The firm has two flagship investment strategies: impact private equity (secondary strategy) and sustainable infrastructure (direct strategy). Both strategies support positive environmental and social impact while targeting market rate investment returns. North Sky has been an active impact investor since the modern era of private markets impact investing began in 2005-2006. For more information, visit northskycapital.com.

For more information:
Go to the website at: www.covingtonfunds.com

SOURCE Covington Capital Corp.

For further information: Email: Scott Clark at [email protected] or Phil Reddon at [email protected]; Call CI Investments Client Services at (888) 746-4751

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