(January 11 – 10:25 ET) – The Canadian Medical Discoveries Fund says that it now qualifies to offer an additional 5% tax credit to Ontario investors as a Research Oriented Investment Fund.

The CMDF invests in Canadian medical research and development companies. To promote this sort of investment the Ontario government has adopted an additional tax credit to labour-sponsored venture capital investment funds that qualify as ROIFs. CMDF is the only labour-sponsored fund to qualify its existing portfolio for this new tax credit and so far it is only the second fund to qualify overall.

“Residents of Ontario now get a new tax break along with the power to fund today’s medical discoveries and bring tomorrow’s cures to life. It’s a tax break that you can feel good about,” said Dr. Calvin Stiller, chairman and CEO of the fund. “We are entering the biotech age. CMDF has a deep, maturing and broad biotechnology base. Investors wanting diversification and growth potential should take a hard look at CMDF. For example, several companies in our portfolio have recently realized IPOs and that’s just the tip of the iceberg.”

Ontario residents buying class A shares of the fund will qualify for an additional 5% non-refundable provincial tax credit, giving these purchasers a total provincial tax credit of 20% to a maximum of $1,000 per year based on an annual investment of $5,000.

Buyers will therefore receive a total of 35% in tax credits (taking into account the 15% federal tax credit) to a maximum of $1,750 per year based on an annual investment of $5,000. Investors must hold the shares for eight years to redeem them without repaying the tax credit.
-IE Staff