Subject: MUTUAL FUNDS
British Columbia Discovery Fund Inc. (formerly British Columbia Discovery Fund (VCC) Inc.) Provides Update on Liquidation Proceedings
VANCOUVER, British Columbia, March 31, 2023 (GLOBE NEWSWIRE) -- British Columbia Discovery Fund Inc., (formerly British Columbia Discovery Fund (VCC) Inc.) (the "Fund"), by MNP Ltd. (formerly The Bowra Group Inc.) in its capacity as liquidator of the Fund (the "Liquidator"), provides the following update as to the liquidation proceedings of the Fund.
Pricing Net Asset Value per Class A Common Share is $1.66 as at February 28, 2023 compared to $1.68 as at November 30, 2022, a decrease of 1%. The principal reason for this change is the decrease in value of the Fund's publicly traded investments in D-Wave Systems Inc., which was partly offset by the increase in value of Tantalus Systems Holdings Inc.
The 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, B.C. D-Wave continues to advance the science used in its products, build its technology, and build its core business of quantum computing services.
On August 5, 2022 DPCM Capital, Inc. ("DPCM") and D-Wave, completed a business combination transaction and D-Wave Quantum Inc. ("D-Wave Quantum") became the parent company of both D-Wave and DPCM.
On August 8, 2022 D-Wave Quantum began trading on the New York Stock Exchange under stock symbol QBTS.
D-Wave Quantum's 20 day average for Pricing Net Asset Value was $2.55 USD as at November 30, 2022 and $1.05 USD as at February 28, 2023.
On March 21, 2023 D-Wave Quantum announced that it had received notice from the New York Stock Exchange that it was not in compliance with the exchange's regulations due to D-Wave Quantum's average closing price falling below $1.00 USD for 30 consecutive trading days. The Company announced that it notified the New York Stock Exchange that it intends to cure the stock price deficiency and intends to consider available alternatives, including but not limited to a reverse stock split, that are subject to shareholder approval. The shares of D-Wave Quantum remain trading on the New York Stock Exchange.
The above announcement, further updates and information about D-Wave can be found at: www.dwavesys.com.
The Fund's trading restriction on D-Wave Quantum shares expired in February 2023 and the Liquidator is assessing its strategy for the sale of Fund's D-Wave Quantum Inc. shares including the sale directly into the market subject to liquidity.
As of the date of this release and subject to confirmation of closing of the trades, the Fund has sold substantially all of its shares of D-Wave Quantum (276,960 sold with 9,079 shares remaining) for prices ranging from USD $0.5374 and $0.5528 per share. The Company will update its Pricing Net Asset Value per common share upon receipt of such confirmations. - Tantalus Systems Holdings Inc. ? ("Tantalus") ? Tantalus is a technology company which develops and operates smart grid solutions for utilities based in Burnaby, B.C. Tantalus is currently publicly listed and trades on the Toronto Stock Exchange under symbol GRID.
The Liquidator notes that the share price of Tantalus increased in the period used to calculate the February 28, 2023 Net Asset Value per Class A Common Share.
The increase in the Tantalus share price increased Net Asset Value per Class A Common Share from the last press release however such increase was more than offset by the decrease in value of the Fund's holdings in D-Wave Quantum.
Further updates and information about Tantalus can be found at: www.tantalus.com and SEDAR.
The Liquidator is continuing to monitor Tantalus and review and assess opportunities for the sale of the Fund's Tantalus shares.
As of the date of this release and subject to confirmation of closing of the trades, the Fund has sold all of its 3,198,317 shares for CAD $0.7507 per share. The Company will update its pricing Net Asset Value per common share upon receipt of such confirmations. - Phemi Systems Corporation ("Phemi") ? Phemi is a technology company which provides data management, analysis, privacy, and security for healthcare based in Vancouver, B.C.
Since the last press release, the Liquidator has not identified any new material events that would impact the Fund's investment in Phemi.
Further updates and information about Phemi can be found at: www.phemi.com.
The Liquidator is continuing to monitor Phemi and review any potential opportunities for liquidity events pursuant to its mandate. - 3760073 Canada Corp. (formerly Navarik Corp.) ("Navarik") ? Navarik is a technology company providing software and data solutions for cargo and shipping of petroleum products based in Vancouver, B.C. Navarik sold all of its assets to Vela Software Group ("Vela") in September 2020. The Fund's current interest in Navarik is limited to future distributions 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 impact the Fund's investment in Navarik.
The Liquidator is continuing to monitor Navarik and the potential for any future distributions to the Fund pursuant to the terms of its 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 exchanged in the sale of Mobidia transaction.
Since the last press release, the Liquidator has not identified any new material events that would impact the Fund's investment in MTI LP.
The Liquidator is continuing to monitor MTI LP and App Annie and review any opportunities for liquidity events pursuant to its mandate.
The Fund will continue to realize on its investments in portfolio companies through participation in liquidity events when possible pursuant to its liquidation mandate and to address remaining outstanding matters relating to its liquidation, including tax matters.
In addition, the Liquidator is now also considering forced sales and distributions in kind where appropriate (and is weighing against the ongoing costs of maintaining the portfolio and continuing to wait for liquidity events).
In accordance with the steps for the voluntary liquidation as approved by shareholders in the Information Circular dated May 22, 2020 and approved by the shareholders of the Fund on June 24, 2020 the Liquidator notes that if the liquidation process extends beyond two years from December 1, 2020 the effective date of the liquidation, the Liquidator retains the discretion to accelerate dissolution of the fund through a forced sale or distribution in kind of the residual portfolio assets.
At this time, the Fund is not aware of the anticipated date of any distribution, and the Fund has not yet determined a date for the dissolution of the Fund.
Updates and materials related to the Fund's liquidation proceedings can be found on the Liquidator's website at: www.bowragroup.com. The Liquidator will continue to make available on its website additional information and updates on the status of the Fund's liquidation proceedings and disseminate a news release on at least a quarterly basis.
Risk Factors and Forward-Looking Information
This news 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 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 Fund's portfolio assets depends on the timing of occurrence of liquidity events in the underlying portfolio companies and on the timing of trading opportunities for the publicly-traded securities in the portfolio, and the amount of such distributions depends on the proceeds realized from such dispositions which in turn will depend on the many factors that impact the value of the portfolio companies. The Fund will continue to incur expenses that will reduce the value of any liquidation distributions; if the Fund fails to retain sufficient funds to pay the expenses and liabilities actually owed to the Fund's creditors, each shareholder receiving liquidation distributions could be held liable for payment to the Fund's creditors, of his, her or its 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 statutory solvency tests, the distribution may be prohibited; there are no assurances that the Liquidator will achieve the same financial results that management might achieve if it had continued as the manager of the Fund; the tax treatment of liquidation distributions may vary from shareholder to shareholder, and shareholders should consult their own tax advisors; and the Class A Shares may, in certain circumstances, cease to be ??qualified investments'' for "registered plans" for the purposes of the Income Tax Act (Canada).
The Fund may have lower realizations pursuant to forced sales and distributions in kind than it would if it had waited for subsequent liquidity events, but nonetheless, such forced sales or distributions in kind may also reduce ongoing administrative costs of the Fund. The Fund may be prevented from making distributions in kind by the constating documents of private companies or by the provisions of applicable shareholders' agreements, if any, each of which may contain legal and technical limitations or prohibitions on the ability of the Fund to distribute shares in kind to shareholders.
See "Risk Factors" in the information circular of the Fund dated May 22, 2020 and available on www.sedar.com.
Additional Information
Additional information relating to the Fund's liquidation and associated matters is contained in the information circular of the Fund dated May 22, 2020, which is available on SEDAR at www.sedar.com.
The Bowra Group is a boutique financial advisory firm with offices in Vancouver, British Columbia and Edmonton, Alberta. The Bowra Group specializes in insolvency and restructuring, and services offered include business restructurings, business viability and performance improvement assessments and turnaround management. The Bowra Group is a Licensed Insolvency Trustee and acts formally as Trustee, Monitor, Receiver and Liquidator in engagements across a variety of industries.
Effective December 1, 2022, The Bowra Group Inc. merged with MNP Ltd. with active engagements transitioning in December 2022 and January 2023. MNP Ltd. (formerly The Bowra Group Inc.) will continue to act as a Liquidator of the Fund and there will be no changes unless otherwise noted.
Further information about MNP Ltd. (formerly The Bowra Group Inc.) and updates to shareholders and information on the liquidation of the Fund can be found at www.bowragroup.com.
Gordon Brown
MNP Ltd. (formerly The Bowra Group Inc.)
Suite 430 ? 505 Burrard Street,
Vancouver, B.C. V7M 2C1
Phone: 604-689-8939
Email : [email protected]
These press releases may also interest you
|
News published on and distributed by:
