VANCOUVER, British Columbia, Jan. 10, 2025 (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 $0.11 as at December 31, 2024 compared to $0.19 as at August 30, 2024.
MTI Limited Partnership (“MTI LP”) made a payment to the Fund in the amount of $246,423.76 in October of 2024 pursuant to the previously announced Sensor Tower Transaction. The Fund’s realization of its investment in MTI LP is now complete.
The Fund’s remaining investment is shares in Phemi Systems Corporation (“Phemi”), an illiquid private company.
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 shareholders given Phemi’s financial position. The Liquidator anticipates it will not realize on these shares before dissolution such that the shares will escheat to the Crown upon dissolution.
The primary difference in the Pricing Net Asset Value is a reserve for costs to complete the Liquidation accrued as at December 31, 2024 to allow the Liquidator to file a final tax return and obtain a clearance certificate from the Canada Revenue Agency.
The Liquidator is required to obtain a clearance certificate from the Canada Revenue Agency before dissolution pursuant to the Exemption Order issued by the British Columbia Securities Commission on November 25, 2020 and the Voluntary Liquidation proceedings under the Business Corporations Act (British Columbia).
Based on the website of the Canada Revenue Agency the processing time for a clearance certificate is up to 120 days, however the actual time may exceed this guideline and the timeline for the issuance of a clearance certificate is outside of the Liquidator’s direct control.
Upon receipt of the clearance certificate, the Liquidator will pay the final distribution to shareholders and proceed to wind up the Fund.
The Liquidator estimates a final distribution to shareholders of $0.11 per share will be available after receipt of the clearance certificate from the Canada Revenue Agency subject to final calculation. However, the timing and amount of any final liquidation distribution cannot be assured. See ‘Risk Factors and Forward-Looking Information’ below.
Further details of the sale of the Fund’s publicly traded investments and distribution to shareholders are contained in earlier press releases.
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 : [email protected]
