CORPORATE OVERVIEW
The federal Immigrant Investor Program (IIP) was created to promote, encourage and facilitate the immigration to Canada of experienced business persons from abroad who will make a positive contribution to Canada's economic development by applying their risk capital and business acumen to Canadian ventures which create jobs for Canadians.

Under the investor category of the program, investors are defined as persons who have successfully operated, controlled or directed a business or commercial undertaking and who have, from their own endeavours, accumulated a net worth of at least $500,000. The investor category is designed for successful business persons who wish to immigrate to Canada and invest in a Canadian enterprise but do not wish to participate in its management.

SGGFMC was established to create and manage the Fund Companies set up under the terms of the IIP as government-administered venture capital funds. SGGFMC administers eight Fund Companies, each of which is independent from the other. Each Fund Company is incorporated under The Business Corporations Act.

SGGFMC holds all voting shares for the Fund Companies and has appointed the directors of each Fund Company board. SGGFMC delegates all decisions and matters related to the Fund Companies, including oversight of investment activities, to the boards of directors of the Fund Companies.

The guidelines of the IIP, as they apply to Saskatchewan, require investors to make an investment of $250,000 in a government-administered investment fund accepted by both the federal and provincial governments. Neither the federal government nor the provincial government provides any guarantee on the return of principal to the investors. Saskatchewan participated in the program to avail itself of this source of investor capital to support employment creation in the province. In 1999, the federal government introduced a number of changes to the IIP. The province elected not to offer any new funds under the IIP.
Once a subscription amount has been fully paid to a Fund company, at least 70% of the amount must be invested in eligible businesses, as defined by the IIP for at least five years as one of the criteria for the investor to satisfy the requirements under the IIP to obtain a Canadian resident visa.

The eight Fund Companies created under the program are at different stages of maturity. The first Fund has repaid its subscribers and is in the process of liquidating its remaining portfolio and resolving outstanding litigation. One Fund has liquidated all of its investments and made a final payment to investors. The notes issued by two other Funds have all matured and these Funds are liquidating their assets to maximize the cash available to repay the immigrant investors. The notes issued by the latter four Funds mature through 2009 and those Funds are managing their investments to match the liquidation of investments to the maturity of notes issued to investors.

SGGFMC ensures that administrative and investment management services are provided to each of the Fund Companies through a long-term management agreement with Crown Capital Partners Inc. These services include fund marketing, investor relations and communication services related to the Immigrant Investor Program, investment and accounting services and managing the investment portfolios on behalf of the Fund Companies.