VANCOUVER, British Columbia, Aug. 19, 2019 (GLOBE NEWSWIRE) -- British Columbia Discovery Fund (VCC) Inc. (the “Fund”), a venture capital investment fund managed by Discovery Capital Management Corp. (“DCMC” or the “Manager”), is pleased to report that the holdback receivable with respect to the sale of Rx Networks Inc. (“Rx Networks”) to Beijing BDStar Navigation Co., Ltd. (“BDStar” – www.navchina.com/en/) first announced in 2017 (the “Rx Transaction”) has been paid in full. The Rx Transaction was completed by the purchase of 100% of the outstanding shares of Rx Networks by BDStar for $31 million of all cash consideration, subject to a 20% holdback of the consideration for a period of two years.
Second Distribution under New Dividend Distribution Model
At the Special and Annual General Meeting of the Fund held on June 8, 2017, shareholders of the Fund approved special resolutions that convert the manner in which the Fund provides liquidity to investors to a dividend distribution model. As a result of the receipt of the approximately $1.6 million holdback receivable amount, the Fund is pleased to announce that it will make the second distribution under this new model in September 2019 in the amount of $0.35 per share. The total amount of the distribution will be approximately $1.5 million with shareholders each receiving their total pro rata share based on the number of shares held.
No action is required by shareholders to receive the distribution, which will be deposited into the accounts where the shares are held. The effect of the distribution will be to reduce Pricing Net Asset Value per share by $0.35 per share on the valuation date following the distribution. The actual change in Pricing Net Asset Value per share may not be exactly this amount due to changes in other inputs into the calculation.
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. The Fund, which raised approximately $74 million before it stopped offering its shares for purchase in 2015, has active investments in six developing technology companies. To obtain further information about the Fund, please contact a registered advisor or visit www.sedar.com or www.bcdiscoveryfund.com.
John McEwen
CEO, B.C. Discovery Fund (VCC) Inc.
Harry Jaako
President, B.C. Discovery Fund (VCC) Inc.
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.
BRITISH COLUMBIA DISCOVERY FUND (VCC) INC.
#43 - 1238 Eastern Drive, Port Coquitlam, BC V3C 6C5
Telephone: (604) 683-3000 Fax: (604) 662-3457
Contact: Charles Cook, CFO - (604) 683-3000
www.bcdiscoveryfund.com info@discoverycapital.com