Mr. Speaker, I am pleased to provide Members with an update on the status of the GNWT's two Immigrant Investor Funds.
Aurora Fund (1996) is fully subscribed. One hundred and thirty nine investors have signed subscription agreements and made deposits to the fund ranging between $10,000 and the full subscription price of $250,000. Fifty-six investors have provided the full subscription price. Of those, the Aurora Fund has issued notes to 47 investors, which means that a total of $11.75 million has been received by the fund.
Of that amount, approximately $7.8 million has been loaned to the following northern companies:
- 3370755 Canada Inc, operating as West Air, in Hay River for the purchase of an aircraft;
- AADRII Limited in Fort McPherson for the construction of a waste heat distribution system;
- GDC Air Leasing Ltd. in Inuvik for the purchase of an aircraft;
- The NWT Cooperative Business Development Fund for the upgrade of digital telecommunications equipment throughout the NWT;
- The Shoe Store Limited in Yellowknife for the purchase of an aircraft;
- 943637 NWT Limited/Beaver Enterprises (Const.) Ltd. in Fort Laird for the purchase of remote camp equipment;
- 2755084 Canada Inc. in Yellowknife for the purchase of helicopters.
This is excellent news, since the companies who have received funding from the Aurora Fund have provided new jobs for northerners.
Out of the balance of the funds received, approximately $3.95 million, $2.45 million has been temporarily invested in bonds and other liquid assets and approximately $1.5 million has been expended in marketing, sales fees and initial start-up costs.
Aurora Fund (1996) should shortly be in a position to issue notes to an additional nine investors, providing $2.25 million to the fund, of which $1.6 million will be available for lending to northern companies
Aurora Fund II has also been very successful to date. So far, the fund has received signed subscription agreements from 136 investors who have made deposits ranging from $10,000 to the full subscription price of $250,000. Of the 42 investors who have now transferred the full subscription price, 17 have received Aurora Fund II notes. Three point nine million dollars has been transferred to the Aurora Fund II investment account as well $260,000 has been expended in marketing, sales fees and initial start-up costs. Of the $3.9 million in the investments account, $2.8 million is available to provide loans to northern business. Aurora Fund II should shortly be in position to issue notes to an additional 25 investors, providing $4.25 million to the fund, of which $3 million will be available for lending to northern companies.
Recently, Citizenship and Immigration Canada announced an extension to the current Immigrant Investor Program. The Aurora Fund II has applied for and received permission to extend the marketing period of Aurora Fund II to June 30, 1998 from December 31, 1997. This extension should allow the fund ample time to sell out the fund, and the majority of the subscription proceeds should be received from both funds by that time.
The two Aurora Funds are government-administered venture capital funds. Therefore, the federal government requires a certain amount of supervision of these funds by our government. To this end, the board of directors of the two funds include: two Ministers of the government, myself and the Minister of Resources, Wildlife and Economic Development and three senior government officials, the Comptroller General and the deputy ministers for the Department of Resources, Wildlife and Economic Development and the Department of Justice. In addition, three individuals from the private sector are also board members, a commercial banking representative and two independent business persons residing in southern Canada. Each of the three has vast experience in the banking sector of the Canadian economy.
Since the Aurora Funds have no full-time employees, firms under contract with the funds are responsible for the administration of the fund. Roland C. Bailey and Associates is the NWT investment manager for both funds and also manages the day-to-day activities of both funds.
The funds also contract, on a fee for service basis, for the legal services from Gullberg, Weist and MacPherson and auditing services from Avery, Cooper and Associates.
I am pleased with the success to date of these two funds. I am confident that they will continue to be successful and that the benefits provided by these funds will be felt for many years to come. Thank you.