British Columbia Discovery Fund (VCC) Inc. is pleased to announce that
it is making an "Early Class B Redemption Offer" to holders of all
outstanding Class B common shares ("Class B Shares"). The Fund has
realized net cash proceeds from the sale of portfolio shares such that
a "Qualified Liquidity Event" has occurred pursuant to the redemption
rights and restrictions of the Class B Shares.
This redemption offer is to all holders of Class B Shares. The
objective of the Fund is to redeem all outstanding Class B Shares,
which have an approximate redemption value of $2.9 million.
Holders of Class B Shares who wish to accept this Early Class B
Redemption Offer must place or have their authorized investment dealer
or broker place an irrevocable redemption acceptance through FundSERV
(Code DCC 200) during the period of June 5, 2012 through to 1:00 p.m.
Vancouver time on Tuesday, June 19, 2012 ("Redemption Acceptance
As specified in the rights and restrictions of the Class B Shares, the
redemption value of each Class B Share redeemed will be determined on
Friday, June 22, 2012, which is the first valuation date of the Fund
after the end of the Redemption Acceptance Period. The Fund will
redeem all Class B Shares where holders have properly submitted their
redemption acceptances on or before the end of the Redemption
Assuming that all holders of Class B Shares accept this Early
Redemption Offer, the Fund will have only Class A common shares
outstanding. The Fund has determined that it has sufficient cash
available to meet the minimum investment requirements of the Fund to
the end of 2012, after providing for the redemption offer disclosed
"With this Early Class B Redemption Offer, we are intending to
eliminate the Class B redemption overhang," said John McEwen, CEO of
the Fund. "We understand those of our Class A common shareholders that
have held their shares for longer than five years are anxious to have
their shares redeemed and we are continuing to work diligently on exit
opportunities for several of the Fund's more mature portfolio
companies with a view to creating an opportunity for redemption of
Class A shares."
The Fund is continuing to sell its Class A Common Shares under its
2012 tax allocation. The Class A Shares are eligible for a 30% tax
credit and are redeemable only after a minimum five-year period after
issuance provided that the Fund has sufficient funds for redemption
and is in compliance with its obligations under the Small Business
Venture Capital Act and other conditions.
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; Class B Shares of the
Fund are not eligible for tax credits. To obtain further information
about the Fund, please contact a registered advisor or visit
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.
Specifically, there are no assurances that the Fund will be able to
sell its remaining shareholdings of Avigilon, or that any such sale
will result in a capital gain on the Fund's investment in Avigilon, or
that the estimated increase in the fair value of the Fund's investment
in Avigilon as a result of the completion of the Avigilon IPO will be
sustained in secondary market trading. 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.