VANCOUVER, British Columbia, Sept. 30, 2024 (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 $0.19 as at August 30, 2024 compared to $0.19 as at May 31, 2024.
Further details of the sale of the Fund’s publicly traded investments and distribution to shareholders are contained in earlier press releases.
3760073 Canada Corp. (formerly Navarik Corp.) (“Navarik”) made a final payment to the Fund in the amount of $35,057.46 in July 2024 pursuant to the terms of the sale of its assets to Vela Software Group in September 2020. The Fund’s realization of its investment in Navarik is now complete.
The Fund’s remaining investments are shares in two illiquid private companies.
The following is an update of the Fund’s two remaining portfolio companies and the Liquidator’s activities:
1. 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 understands that Phemi was not successful in raising additional capital to exercise certain warrants held by Phemi, which have now expired. The warrants represented most of the remaining asset value of Phemi and debts due to secured creditors now far exceed any remaining asset value.
The Liquidator believes there is no possibility of a material realization on the Fund’s investment in Phemi via a forced liquidation sale and very little possibility of a future liquidity event that would result in a recovery to the Fund given Phemi’s financial position.
The Liquidator further believes the costs associated with a distribution in kind would exceed any potential benefits to the shareholders given Phemi’s financial position.
Further updates and information about Phemi can be found at: www.phemi.com.
The Liquidator intends to assess options to dispose of the Funds investment to facilitate the wind up and liquidation of the Fund.
The Liquidator notes it previously revised the value of Phemi used in calculating Pricing Net Asset Value to reflect a reduced liquidation value and will now further revise the value of Phemi to reflect a nil recovery on the Fund’s investment.
2. 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 Data.ai Inc. (formerly App Annie Inc.) in 2015. The Fund’s current interest in MTI LP is limited to its indirect interest in Data.ai Inc. shares which were acquired by MTI LP in the sale of Mobidia transaction.
In March 2024, Data.ai Inc. announced that it had been acquired by Sensor Tower (the “Sensor Tower Transaction”) for terms not publicly announced.
On July 31, 2024, MTI LP’s Board, with the approval of MTI LP’s unitholders, approved the disposition of the Data.ai Inc. shares held by the Fund in the Sensor Tower Transaction, the distribution of the proceeds of the disposition to unitholders, subject to certain holdbacks, and the wind up of MTI LP.
The payment of proceeds of the Sensor Tower Transaction, including the Fund’s entitlement to any payment, is expected to occur in 2024; however the timeline and amount payable to the Fund is still subject to final calculation and confirmation.
Upon receipt of the payment, the Fund’s realization of its investment in MTI LP will be complete.
The Liquidator will provide further information when available subject to any confidentiality terms which may be required.
The Liquidator may further revise the value of MTI LP used for calculating Pricing Net Asset Value as the Liquidator further assesses the details of the transaction.
Once the Fund has received the MTI LP payout, its remaining asset will be its Phemi shares which have no value; and currently the Fund is addressing remaining outstanding matters relating to its liquidation, including tax matters.
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 those described in the paragraphs below.
The Fund cannot assure its shareholders of the timing or amount of any final liquidation distributions.
The Fund continues 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).
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.
MNP Ltd. Is one of the largest corporate insolvency practices in Canada and a subsidiary of national professional services firm MNP LLP. The Bowra Group merged with MNP Ltd. effective December 1, 2022. 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 1630 – 609 Granville Street,
Vancouver, B.C. V7Y 1G5
Phone: 604-689-8939
Email : insolvencyinfoTBG@mnp.ca
