Discovery Capital Corporation

Discovery Capital Corporation


November 03, 2005 11:11 ET

British Columbia Discovery Fund Invests $2.0 Million in TIR Systems Ltd.; Discovery Capital Portfolio Company TIR Closes $14.2 Million Debenture Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2005) - Discovery Capital Management Corp. ("Discovery Capital") (TSX VENTURE:DVY.Y), manager of British Columbia Discovery Fund (VCC) Inc. (the "Fund" or "BCDF"), is pleased to announce that the Fund has made an investment of $2.0 million into TIR Systems Ltd. ("TIR") as part of a $14.2 million closing of a private placement of 7% convertible debentures recently announced by TIR. TIR's financing structure for these debentures permits subsequent closings of further subscriptions on the same terms. The debentures purchased by BCDF are due in 2011 and are convertible into 1,538,462 common shares of TIR at a conversion price of $1.30 per share. Under the terms of the private placement, BCDF also acquired warrants for the purchase of up to 400,000 common shares of TIR, exercisable over three years at a price of $1.50 per share.

TIR intends to use the proceeds of the convertible debenture financing to fund commercialization of its LED enabling, industry-leading technology platform, LEXEL™, which was introduced by TIR earlier in 2005 at Lightfair in New York to serve the general white light illumination market. LEXEL™ is TIR's solid state lighting solution (SSL) designed to become the industry standard in bringing the benefits of SSL to mainstream lighting applications. Recently, TIR announced the signing of a design collaboration agreement and formation of a strategic partnership with two leading North American manufacturers to design and develop innovative lighting products that advance the LEXEL™ technology within a variety of target lighting markets. Discovery Capital Corporation has been an investor and strong supporter of TIR since 1999 as the company has evolved into a world class player in the SSL lighting industry.

"B.C. Discovery Fund's investment in TIR represents both a unique opportunity to fund the development of a potential new industry standard, as well as a tremendous addition to the Fund's growing portfolio of investments," commented Harry Jaako, President of B.C. Discovery Fund and director of TIR. "With TIR, the Fund acquires an investment in a TSX-listed public company and one with a proven ability to develop and market lighting products that appeal to the lighting industry. TIR has achieved tremendous recognition in global markets with its SSL products for the architectural and corporate identity markets. In its current challenge of developing the LEXEL™ to become, and remain, the LED light-source standard package, TIR faces tremendous risks, but the rewards of success are also significant. We are confident that TIR's management team, lead by its President, Leonard Hordyk and supported by a board of directors that is committed to the success of the company, is up for the challenge."

About TIR Systems Ltd.

TIR Systems Ltd., a world leader in delivering specialty lighting systems, is building the foundations for tomorrow's lighting. Through sound innovation and proven technical capability, TIR is developing, designing and marketing the core technologies that will allow Solid State Lighting (SSL) to move to the forefront of mainstream lighting.

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, communications, health and life sciences, and energy and environmental technologies. Established in 2002, the Fund is the largest SBVCA registered venture capital corporation 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 offers its shares on a continuous basis and has raised over $29 million to date. To obtain further information about the Fund, please contact a registered advisor, or visit or

About Discovery Capital Management Corp.

With nearly 20 years of venture capital experience in British Columbia, Discovery Capital is a venture fund manager and investor specializing in: information technology, communications, health and life sciences, and other advanced technologies. We have enhanced value for over 250 technology ventures, with our proven expertise in strategic planning, management development, innovative financing strategies, corporate governance and positioning for liquidity.

For more information about Discovery Capital, please visit

John McEwen, CEO, B.C. Discovery Fund (VCC) Inc. and Discovery Capital Management Corp.

Harry Jaako, President, B.C. Discovery Fund (VCC) Inc. and Discovery Capital Management Corp.

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 issuers caution that actual performance will be affected by a number of factors, many of which are beyond their control. Future events and results may vary substantially from what the issuers currently foresee.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information