VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) - British Columbia Discovery Fund (VCC) Inc. is pleased to announce that it has now redeemed 90% of all Class B common shares ("Class B Shares") issued and outstanding, pursuant to an early redemption offer completed in November 2011 and pursuant to the Fund's second early redemption offer announced on June 5, 2012. Under the terms of the Class B Shares, the Fund has the right to require redemption of the small balance of remaining outstanding Class B Shares in early 2013.
The Fund issued approximately 518,000 Class B (DCC200) Shares at a price of $10.00 per share during July to October 2011, with the specific objective of raising funds in order to meet the Fund's minimum investment requirements under the Small Business Venture Capital Act ("SBVCA"). The Fund elected to offer Class B Shares without investment tax credit benefits, but with certain other rights and attributes, including a redemption priority in advance of the Class A (DCC100, 101, 102, 104) common shares, and no minimum hold period prior to redemption entitlement.
The Fund is pleased to report that the objective relating to the issuance of the Class B Shares has been met. Net proceeds were invested as required, enabling the Fund to bring itself current with respect to its minimum investment obligations under the SBVCA up to 2011 year-end. The Fund has no present intention to issue additional Class B Shares.
"We are very satisfied with developments in BC Discovery Fund of late and particularly with respect to our successful achievement of the Fund's investment requirements with the capital raised from the sale of the Class B Shares," said John McEwen, CEO of the Fund. "Primarily as a result of our portfolio company, Avigilon Corporation's IPO and listing on the Toronto Stock Exchange, we have in less than a year been able to redeem substantially all of the Class B Shares. With the Class B share proceeds, we made investments in two new portfolio companies, and are working even more actively with several of our other mature portfolio companies to achieve liquidity from more of our investment positions in order to resume our Class A share redemption program."
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.
Established in 2002 and managed by Discovery Capital Management Corp., the Fund is focussed on making diversified investments in British Columbia with the objectives of achieving long-term capital appreciation for its shareholders and contributing to the growth in value and employment of the technology industry in British Columbia. In addition to offering a means of participating in the potential of British Columbia's newest technology ventures, the Fund offers significant tax savings to eligible British Columbia individual and corporate investors. The Fund, which offers its shares on a continuous basis, has raised approximately $74 million to date and has investments in thirteen developing technology companies. B.C. resident investors are entitled to receive a tax credit equal to 30% of the amount invested in Class A Shares of the Fund. To obtain further information about the Fund, please contact a registered advisor or visit www.sedar.com or www.bcdiscoveryfund.com.
CEO, B.C. Discovery Fund (VCC) Inc.
President, B.C. Discovery Fund (VCC) Inc.
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. Specifically, there are no assurances that the portfolio investments of the Fund will be successful or that sales of portfolio shareholdings of the Fund will result in capital gains to the Fund. The Fund cautions that actual performance, including the ability of the Fund to sell or redeem any of its own shares, 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 Fund currently foresees.