Canadian Medical Discoveries Fund Inc. (CMDF) and GrowthWorks Canadian Fund Ltd. successfully completion of the previously announced merger of CMDF into GrowthWorks Canadian Fund, effective May 22, the funds said Monday.

GrowthWorksCanadian Fund acquired the net assets of CMDF valued at $85,211,309 in exchange for approximately 9,832,073 Canadian Fund Class A shares issued to CMDF and distributed to CMDF shareholders in exchange for their CMDF Class A shares.

CMDF shareholders approved the merger at the fund’s annual general meeting on February 26.

“We believe CMDF shareholders will benefit from a larger asset base, a more diversified investment portfolio, improved liquidity and a larger investment team with national breadth and experience,” says David Levi, president and CEO of GrowthWorks Ltd.

“Benefits of this merger for CMDF shareholders include enhanced diversification and increased liquidity. These were key factors in determining that the merger was a positive option for CMDF shareholders,” says Serge Carriere, chairman of the board of CMDF.

Trades of the Merger Shares will commence on Monday, May 25, 2009.

In order to allow Canadian Fund to more accurately forecast and manage its liquidity, the shares are subject to a permitted redemption schedule for three years following the merger. Subject to certain exceptions, including where tax credits must be repaid on redeemed shares, redemptions of shares over and above the permitted levels will be subject to an additional redemption fee payable to Canadian Fund in the amount of 35% of the redemption proceeds. Other applicable fees and withholdings will apply.

IE