NEWS RELEASE TRANSMITTED BY Marketwired
FOR: British Columbia Discovery Fund (VCC) Inc.
FEBRUARY 13, 2014
British Columbia Discovery Fund 2014 Redemption Plan Announced
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 13, 2014) - British Columbia
Discovery Fund (VCC) Inc. (the "Fund"), a venture capital investment
fund managed by Discovery Capital Management Corp., is very pleased to announce
having made aggregate redemption offers of $10.9 million of its Class A Shares
The Fund is also pleased to announce its redemption plan for 2014. Pursuant to
its articles, the Fund intends to redeem approximately 20% of Pricing Net Asset
Value of the Fund at the end of the preceding fiscal year, which will be $9.6
million. Based on and assuming the successful closing of the previously
announced sale of portfolio company In Motion Technology Inc. to Sierra
Wireless Inc. (the "Transaction") on the terms that have been agreed
to, combined with cash on hand, the Fund expects to have the funds it needs to
proceed with the full amount of the targeted $9.6 million redemption. Assuming
a closing date for the Transaction of early March as announced, the Fund would
proceed with the redemption shortly thereafter.
"We note that BC Discovery Fund is the only registered venture capital
corporation currently offering its shares to retail investors in British
Columbia. Investors who acquire shares will participate in a promising
portfolio of some of BC's most exciting technology companies while being
eligible for a 30% provincial refundable tax credit", comments Harry
Jaako, President of the Fund. "Investors on the "waiting list"
that become eligible to have their redemption requests filled in 2014 may wish
to discuss with their financial advisors a strategy of re-investing their
redeemed proceeds prior to March 3, 2014 so as to receive a tax credit that is
still applicable for the 2013 tax year."
"We are very pleased to have made $10.9 million of redemption offers in
2013 and look forward to processing the next $9.6 million redemption offer in
early 2014, meeting our target of 20% of prior year-end net asset value in each
year. As we look forward to 2015 and a redemption plan for that year, we are
mindful that the Fund continues to hold approximately 400,000 shares of
Avigilon Corporation at this time, which have a current value of over $12
million", stated Charles Cook, CFO of the Fund. "As well, we have a
mature portfolio with several other companies that we continue to work with to
achieve liquidity events that will enable the Fund to fund future
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 $73 million to date and has active investments in ten
developing technology companies. To obtain further information about the Fund,
please contact a registered advisor or visit www.sedar.com or
John McEwen, CEO, B.C. Discovery Fund (VCC) Inc.
Harry Jaako, 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. 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
FOR FURTHER INFORMATION PLEASE CONTACT:
British Columbia Discovery Fund (VCC) Inc.
Sales & Marketing Director
(604) 683-3000 ext. 115
INDUSTRY: Computers and Software - Hardware, Financial Services - Venture
-0- Feb/13/2014 18:45 GMT
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