VANCOUVER, British Columbia, March 31, 2022 (GLOBE NEWSWIRE) — British Columbia Discovery Fund Inc., (formerly British Columbia Discovery Fund (VCC) Inc.) (the “Fund”), by The Bowra Group Inc. in its capacity as liquidator of the Fund (the “liquidator”), provides the following update on the Fund’s liquidation procedures.
The net asset value per Class A common share is $2.23 as of February 28, 2022 compared to $2.53 as of November 30, 2021, a 12% decrease. The main reason for this change is the change in the value of the Fund’s investment in the listed Tantalus Systems Holdings Inc. due to a fall in the share price of Tantalus System Holdings Inc. Following is an update of the Fund’s portfolio companies and the liquidator’s activities:
D Wave Systems Inc. †D wave”) – D-Wave is a quantum computing company based in Burnaby, BC. D-Wave continues to advance the science used in its products, develop its technology and build its core business of quantum computing services.
On February 8, 2022, D-Wave announced that it had entered into a definitive transaction agreement with DPCM Capital, Inc., a publicly traded special purpose acquisition company (NYSE: XPOA), which would result in D-Wave’s public listing upon completion of the transaction.
The transaction is expected to close in the second quarter of 2022, subject to normal closing conditions, the approval of the shareholders of DPCM Capital, Inc. and the approval of D-Wave’s shareholders.
The liquidator has not provided sufficient information about the transaction to determine the effect of the transaction on the net asset value of the fund, but the liquidator believes that the transaction, if completed, will result in a material increase in the net asset value of the fund. fund.
Further updates, details of the transaction and information about D-Wave can be found at: www.dwavesys.com†
The liquidator will continue to close the transaction between D-Wave and DPCM Capital, Inc. monitor the potential impact on the Fund’s net asset value, and assess potential liquidity event opportunities under its mandate.
Tantalus Systems Holdings Inc. †Tantalus”) – Tantalus is a technology company that develops and operates smart grid solutions for utilities based in Burnaby, BC. Tantalus is currently publicly traded and traded on the Toronto Stock Exchange under the symbol TSX:GRID.
Since the last press release, the liquidator has not identified any new material events that would affect the fund’s investment in Tantalus, but the liquidator notes that Tantalus’ share price has declined in the period used to estimate the net asset value of 28 February 2022 to be calculated per class A common share.
Due to the relative value of the Fund’s investment in Tantalus, the decline in Tantalus’ share price is the primary reason for the decline in the net asset value per class A common share as of the last press release.
Further updates and information about Tantalus can be found at: www.tantalus.com and SEDAR.
The liquidator continues to monitor Tantalus and assess its strategy for the realization of the Fund’s position in Tantalus.
Phemi Systems Corporation †phemic”) – Phemi is a technology company providing data management, analytics, privacy and security for the healthcare industry based in Vancouver, BC
Since the last press release, the liquidator has not identified any new material events that would affect the Fund’s investment in Phemi.
Further updates and information about Phemi can be found at: www.phemi.com†
The liquidator will continue to monitor Phemi and assess any liquidity event opportunities under his mandate.
3760073 Canada Corp. (formerly Navarik Corp.) (“navarik”) – Navarik is a Vancouver-based technology company providing software and data solutions for the freight and shipping of petroleum products, BC Navarik has sold all of its assets to Vela Software Group (“sail”) in September 2020. The Fund’s current interest in Navarik is limited to future distributions that Navarik may make to its shareholders pursuant to the transaction with Vela.
Since the last press release, the liquidator has not identified any new material events that would affect the Fund’s investment in Navarik.
The liquidator will continue to monitor Navarik and the potential for future distributions to the Fund in accordance with the terms of the sale to Vela.
MTI Limited Partnership (acquired as a result of the sale of Mobidia Technology Inc.) (“MTI LP”) – Mobidia was a fund portfolio company that was sold to App Annie in 2015. The Fund’s current interest in MTI LP is limited to its respective interest in App Annie Shares held by MTI LP and exchanged on the sale of the Mobidia transaction.
Since the last press release, the liquidator has not identified any new material events that would affect the Fund’s investment in MTI LP.
The liquidator will continue to monitor MTI LP and App Annie and assess any liquidity event opportunities under its mandate.
The Fund will continue to realize its investments in portfolio companies by participating, where possible, in liquidity events as part of its liquidation mandate and to address remaining outstanding issues in relation to its liquidation, including tax matters.
At this time, the Fund is not aware of the expected date of any distribution or the date of dissolution.
The liquidator has released the liquidator’s first report on November 30, 2021 and a copy of the report is available on the liquidator’s website under liquidator – reports at: www.bowragroup.com†
Updates and materials relating to the liquidation procedure of the Fund can be found on the liquidator’s website: www.bowragroup.com† The liquidator will continue to provide additional information and updates on the status of the Fund’s liquidation proceedings on its website and will issue a press release at least quarterly.
Risk Factors and Forward-Looking Information
This press release may contain statements about anticipated 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 the control of the liquidator.
Certain risks include, but are not limited to: the Fund cannot assure its shareholders of the timing or amount of any liquidation distributions. The timing of liquidation of the assets in the Fund’s portfolio will depend on the timing of liquidity events in the underlying portfolio companies and the amount of such distributions will depend on the proceeds realized from such disposals, which in turn will depend on the many factors that influence the value of the portfolio companies. The Fund will continue to incur costs that will reduce the value of any liquidation distributions; if the Fund fails to maintain sufficient funds to pay the costs and liabilities actually owed to the Fund’s creditors, any shareholder receiving liquidation distributions may be held liable for payment to the Fund’s creditors, of his, her or his pro rata share of any shortfall, up to the amount actually distributed to each shareholder; if at the time of a distribution to shareholders the Fund cannot pass the statutory solvency tests, the distribution may be prohibited; there are no guarantees that the liquidator will achieve the same financial results that management could achieve had it remained the manager of the Fund; the tax treatment of liquidation distributions may differ from shareholder to shareholder, and shareholders should consult their own tax advisers; and the Class A Shares may, in certain circumstances, cease to be ”qualifying investments” for ‘registered plans’ for the purposes of the Income Tax Act (Canada).
See “Risk Factors” in the Fund’s information circular dated 22 May 2020 and available at www.sedar.com†
Additional information regarding the liquidation of the Fund and related matters is contained in the Fund’s information circular dated 22 May 2020, which is available on SEDAR at www.sedar.com†
The Bowra Group is a financial advisory firm with offices in Vancouver, British Columbia and Edmonton, Alberta. The Bowra Group specializes in insolvency and restructuring, and the services offered include corporate restructuring, assessments of company viability and performance improvement, and turnaround management. The Bowra Group is a licensed insolvency trustee and formally acts as trustee, monitor, receiver and liquidator on assignments in a variety of industries.
More information about The Bowra Group and shareholder updates and information on the liquidation of the Fund can be found at: www.bowragroup.com†
The Bowra Group Inc.
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