VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 03/10/15 — Fund Update
British Columbia Discovery Fund (VCC) Inc. (the “Fund”), a venture capital investment fund managed by Discovery Capital Management Corp. (the “Manager”), announces that it will focus on the management of existing investments, the deployment of its investment capital into new investment(s) and the realization of investments and distribution of the proceeds to shareholders. The Board of Directors of the Fund (the “Board”) has determined that it is in the best interests of shareholders to maximize the value of the Fund–s mature portfolio as well as the new investment(s) it will be making for the benefit of the existing shareholders without further dilution. Accordingly, the Fund has voluntarily discontinued the sale of its Class A Shares, effective immediately, and will not be renewing its continuous distribution prospectus, which lapses on April 15, 2015.
John McEwen, CEO of BC Discovery Fund comments: “The Fund currently has $40 million in assets, with mature investments in eight companies, and over $4.0 million that it is required to invest. Closing the sale of shares and eliminating further dilution is a typical evolution for venture funds that have achieved a mature portfolio.”
In addition, the Board has considered the manner in which the Fund provides liquidity to its shareholders, including considering alternatives to its existing redemption model, and will be making a recommendation for approval by shareholders at the next annual meeting of the Fund. Going forward, the Manager intends to focus on the deployment of capital into new investments and the management and divestiture of the Fund–s portfolio investments to maximize the value of realizations and returns to shareholders. The Fund will no longer be selling its shares and accordingly will transition from being an open-ended fund to a closed fund. In considering an appropriate distribution model in these circumstances, the Board considered the following:
Based on the foregoing, the Board is recommending that the Fund adopt a dividend distribution model and that the Fund put such a proposal forward to the shareholders of the Fund to consider and vote upon. The details of such a proposal will be contained in an information circular to be prepared by the Fund and provided to shareholders prior to a meeting of the shareholders where this matter will be decided by the shareholders.
Portfolio Update
Following are summary descriptions of three portfolio companies which illustrate the maturity and diversity of the portfolio.
About British Columbia Discovery Fund (VCC) Inc.
British Columbia Discovery Fund (VCC) Inc. was established to make venture capital investments in a portfolio of small businesses in British Columbia that qualify under the Small Business Venture Capital Act, focusing on all of B.C.–s top internationally recognized technology clusters: information technology (software and hardware); mobile technology (wireless and networking solutions); clean technology (alternative energy and energy-saving technology solutions); new media; and health and life sciences.
To obtain further information about the Fund, please contact a registered advisor or visit or .
This press release is not an offer to sell or a solicitation of an offer to buy common shares. This press release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. The issuer cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what the issuer currently foresees.
Contacts:
British Columbia Discovery Fund (VCC) Inc.
Charles Cook
CFO
(604) 683-3000 ext. 102
(604) 662-3457 (FAX)
You must be logged in to post a comment Login