British Columbia Discovery Fund (VCC) Inc.

British Columbia Discovery Fund (VCC) Inc.

September 22, 2011 13:03 ET

British Columbia Discovery Fund Portfolio Company Avigilon files Preliminary Prospectus for Proposed Initial Public Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 22, 2011) -

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British Columbia Discovery Fund (VCC) Inc. announces that its privately-held portfolio company, Avigilon Corporation, has filed a preliminary prospectus dated September 20, 2011 with respect to the proposed initial public offering ("Avigilon IPO" or "Offering") of its common shares. Pricing of the Offering will be determined in the context of the market price prior to the filing of a final prospectus in respect of the Avigilon IPO.

The preliminary prospectus of Avigilon is available on www.sedar.com. The preliminary prospectus is subject to completion or amendment. There will not be any sale or acceptance of an offer to buy the common shares of Avigilon until a receipt for the final prospectus relating to the Offering has been issued. Completion of the Offering is subject to and conditional upon the receipt of all necessary approvals, including regulatory approvals.

Avigilon is a leader in the design, manufacturing and marketing of high definition, network-based video surveillance systems and equipment for the global security market. The Avigilon surveillance system has been designed to provide high quality video capture, transmission, recording and playback. The components of the Avigilon system include cameras, recording hardware and software which may be sold separately or in combination to provide customers with a customizable end-to-end video surveillance solution.

BC Discovery Fund currently holds 2,500,000 preferred shares of Avigilon. In the event that the Avigilon IPO is successfully completed, accrued and unpaid dividends will be paid in cash on these shares and they will be converted into 2,500,000 common shares of Avigilon ("Avigilon Shares"). The Fund has expressed an interest in selling some of its Avigilon Shares in a secondary offering of shares also proposed to be made under the Avigilon IPO. However, there is no assurance that the Avigilon IPO will be completed as contemplated or at all. The Fund's participation in the Avigilon IPO is subject to the Fund reaching agreement with Avigilon and the underwriters on the number of the Fund's Avigilon Shares that will be included in the Offering and on the price for those shares. The Fund may not be able to sell any of its Avigilon Shares under the Avigilon IPO.

If the Avigilon IPO is successfully completed, the Fund intends to update the estimated fair value of its holding of Avigilon Shares in accordance with the pricing of Avigilon's common shares pursuant to the Avigilon IPO. In accordance with the proposed terms of the Avigilon IPO, any Avigilon Shares held by the Fund and not sold will be subject to a 180 day lock up period.

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 (software and hardware), mobile technology (wireless and networking solutions), clean technology (alternative energy and energy-saving technology solutions), new media and health and life sciences.

Established in 2002 and managed by Discovery Capital Management Corp., the Fund is focussed on 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, which offers its shares on a continuous basis, has raised approximately $71 million to date and has investments in twelve developing technology companies. B.C. resident investors are entitled to receive a tax credit equal to 30% of the amount invested in Class A Shares of the Fund; Class B Shares of the Fund are not eligible for tax credits. To obtain further information about the Fund, please contact a registered advisor or visit www.sedar.com or www.bcdiscoveryfund.com.

John McEwen, CEO, B.C. Discovery Fund (VCC) Inc.

Harry Jaako, President, B.C. Discovery Fund (VCC) Inc.

This press release is not an offer to sell or a solicitation of an offer to buy common shares. This press release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Specifically, there are no assurances that the Fund will be able to sell any of its shares of Avigilon, either pursuant to the Avigilon IPO or otherwise, or that any such sale will result in a capital gain on the Fund's investment in Avigilon, or that the estimated fair value of the Fund's investment in Avigilon will increase as a result of the completion of the Avigilon IPO or otherwise. The Fund cautions that actual performance, including the ability of the Fund to sell or redeem any of its own shares, will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what the Fund currently foresees.

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