VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2013) - British Columbia Discovery Fund (VCC) Inc. (the "Fund"), a venture capital investment fund managed by Discovery Capital Management Corp. ("DCMC"), is updating its reporting of security holdings in its portfolio company, Vigil Health Solutions Inc. ("Vigil").
The Fund has exercised warrants previously issued to it in May 2011 to purchase 1,153,846 common shares of Vigil. These shares represent 9% of the outstanding common shares of Vigil prior to exercise of the warrants held by the Fund or of any other outstanding warrants to acquire common shares of Vigil. The exercise price was $0.10 per share, so that Vigil receives proceeds of $115,385 as a result of this transaction.
Following this transaction, as well as a disposition through the TSX Venture Exchange on May 22, 2013 of 1,182,346 common shares of Vigil, the Fund holds 3,026,906 common shares of Vigil, representing 21% of the outstanding common shares of Vigil immediately after the Fund's exercise of its warrants.
In addition, Discovery Capital Management Corp. ("DCMC"), which has voting control and direction over the holdings of the Fund, is custodian of and has voting control over 376,106 common shares of Vigil which are being held for the benefit of former shareholders of Discovery Capital Corporation ("DCC"). These shares represent approximately 3% of the outstanding common shares of Vigil immediately after exercise of the warrants. Accordingly, DCMC presently has voting control and direction over a combined total of approximately 24% of the outstanding common shares of Vigil after exercise of the warrants. Harry Jaako, director of the Fund and of Vigil, and a principal of DCMC, also holds common shares representing an approximate 0.2% interest in Vigil.
The purchase of common shares on exercise of the warrants was made by the Fund for investment purposes. The Fund may acquire ownership of additional securities of Vigil, or the Fund (and/or DCMC on behalf of the Fund and/or the former shareholders of DCC) may dispose of securities of Vigil, as circumstances arise or market conditions warrant. The Fund and DCC have been long-term investors of Vigil.
Further details are available in the accompanying report filed by the Fund on SEDAR pursuant to National Instrument 62-103.
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 $72 million to date and has active investments in eleven 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 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.