Headnote

Mutual Reliance Review System for Exemptive Relief Applications - application for mutual fund lapse date extension.

Applicable British Columbia Provisions

Securities Act, R.S.B.C. 1996, c.418, s. 70
Securities Rules, B.C. Reg. 194/97, s. 121, 122, 123 and 124.


IN THE MATTER OF THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, MANITOBA, ONTARIO, QUEBEC, NEW BRUNSWICK, NOVA SCOTIA, PRINCE EDWARD ISLAND, NEWFOUNDLAND, NORTHWEST TERRITORIES, YUKON TERRITORY AND NUNAVUT TERRITORY

AND

IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR
EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF
CANADIAN MEDICAL DISCOVERIES FUND INC.
(the "Fund")

MRRS DECISION DOCUMENT

WHEREAS the Canadian securities regulatory authority or regulator (the “Decision Maker”) in each of the provinces and territories of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Yukon Territory, Nunavut Territory and Northwest Territories (the “Jurisdictions”) has received an application (the “Application”) from the Fund for a decision pursuant to securities legislation of the Jurisdictions (the “Legislation”) that the time limits pertaining to the distribution of securities under the prospectus of the Fund be extended to the time limits that would be applicable if the lapse date was January 9, 2001.

AND WHEREAS under the Mutual Reliance Review System for Exemptive Relief Applications (the “System”) the Ontario Securities Commission (the “Commission”) is the principal regulator for this application;

AND WHEREAS the Fund has represented to the Decision Makers that:

1. The Fund is a labour sponsored investment fund incorporated under the Canada Business Corporations Act and is registered, prescribed or approved, as the case may be, under the Community Small Business Investments Funds Act (Ontario), the Income Tax Act (Canada), the Equity Tax Credit Act (Nova Scotia), the Income Tax Act (New Brunswick) and the Labour- Sponsored Venture Capital Corporations Act (Saskatchewan).

2. The Fund is a reporting issuer as defined in the Legislation and is not in default of any of the requirements of the Legislation.

3. The earliest lapse date for the distribution of qualified securities (the “Securities”) of the Fund pursuant to its prospectus dated December 22, 1999 (the "Prospectus") is December 22, 2000 (the “Lapse Date”).

4. On November 22, 2000, the Fund filed a pro forma prospectus (the “Renewal Prospectus”), under SEDAR project number 314232 in each of the Jurisdictions, within the time limits specified by the Legislation.

5. In connection with the filing of the Renewal Prospectus, discussions between staff of the Commission and the Fund are currently ongoing with respect to the reporting of performance fees on financial statements and the restatement of audited financial statements. As a result of the ongoing discussions, there is insufficient time to settle these issues so that the (final) prospectus of the Fund can be filed and receipted with the time limits imposed by the Legislation based on the Lapse Date.

AND WHEREAS under the System, this MRRS Decision Document evidences the decision of each Decision Maker (collectively, the “Decision”);

AND WHEREAS each of the Decision Makers under the Legislation is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met;

The Decision of the Decision Makers under the Legislation is that that the time periods provided by the Legislation for the filing of the Renewal Prospectus and receipting thereof, in connection with the distribution of the Securities under the Prospectus, are hereby extended to the time limits that would be applicable if the lapse date for distribution of the Securities under the Prospectus was January 9, 2001.

DATED at Toronto this 2nd day of January, 2001.


Paul A. Dempsey
Assistant Manager/Senior Legal Counsel
Investment Funds, Capital Markets