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
QUEBEC, BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, MANITOBA,
NOVA SCOTIA, PRINCE EDWARD ISLAND AND NEWFOUNDLAND

AND

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

AND

IN THE MATTER OF
YORKTON HEALTH SCIENCES FUND AND YORKTON KNOWLEDGE INDUSTRIES FUND


MRRS DECISION DOCUMENT


WHEREAS the Canadian securities regulatory authority or regulator (the “Decision Maker”) in each of the Provinces of Quebec, British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, Prince Edward Island, and Newfoundland (the “Jurisdictions”) has received an application (the “Application”) from Lion Funds Management Inc. (the “Manager”), Yorkton Health Sciences Fund and Yorkton Knowledge Industries Fund (together, the “Funds”) for a decision pursuant to the securities legislation of the Jurisdictions (the “Legislation”) that the lapse date for the renewal of the simplified prospectus and annual information form of the securities of the Funds (the “Prospectus”) be extended to those time limits that would be applicable if the lapse date of the Prospectus was January 11, 2001;

AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the “System”), the Alberta Securities Commission is the principal regulator for this application;

AND WHEREAS it has been represented by the Manager to the Decision Makers that:

(a) The Manager is a corporation incorporated under the laws of British Columbia. The Manager is the manager, principal distributer, promoter, registrar and transfer agent of the Funds.

(b) The Yorkton Health Sciences Fund and Yorkton Knowledge Industries Fund are open-ended mutual fund trusts established by the Manager under the laws of Ontario and British Columbia, respectively.

(c) The Funds are reporting issuers under the Legislation and are not in default of any requirements of the Legislation or the regulations made thereunder.

(d) Pursuant to the Legislation made thereunder, the lapse date (the “Lapse Date”) for distribution of securities of the Funds is December 30, 2000.

(e) Since December 30, 1999, the date of the Prospectus, no material change has occurred that has not been reflected in an amendment to the Prospectus. Accordingly, the Prospectus represents up to date information regarding each of the Funds offered therein. The extension requested will not affect the currency or accuracy of the information contained in the Prospectus of the Funds and accordingly will not be prejudicial to the public interest.

(f) In order to provide the Ontario Securities Commission sufficient time to review the Manager's response to their comments on the Prospectus of the Funds, the Manager has requested an extension of the Lapse Date to January 11, 2001.

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

AND WHEREAS each of the Decision Makers are 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 pursuant to the Legislation is that the time limits provided by Legislation as they apply to a distribution of securities under a prospectus are hereby extended to the time limits that would be applicable if the Lapse Date for the distribution of securities under the Prospectus of the Funds was January 11, 2001 and that the offering of securities of the Funds may continue provided a pro forma simplified prospectus and annual information form are filed 30 days prior to January 11, 2001, a final simplified prospectus and annual information form are filed no later than 10 days after January 11, 2001 and receipts for the simplified prospectus and annual information form are obtained no later than 20 days after January 11, 2001.

DATED at Edmonton, Alberta this 19th day of January, 2001.


Agnes Lau, CA
Deputy Director, Capital Markets