Discovery Capital Corporation

Discovery Capital Corporation

October 31, 2005 14:10 ET

Discovery Capital Managed Fund Reports Purchase of $2.0 Million Convertible Debentures of TIR Systems Ltd.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 31, 2005) - British Columbia Discovery Fund (VCC) Inc. ("BCDF"), a venture capital corporation managed by a wholly owned subsidiary of Discovery Capital Corporation, (TSX VENTURE:DVY.Y) has purchased $2.0 million principal amount of 7% secured subordinate convertible debentures ("Debentures") of TIR Systems Ltd. ("TIR") and warrants for the purchase of 400,000 common shares of TIR pursuant to the closing of a private placement announced by TIR on October 28, 2005.

The Debentures purchased by BCDF represent approximately 14% of the debentures issued by TIR at the closing. These Debentures, upon issuance at their conversion price of $1.30 per share, would result in the acquisition of 1,538,462 shares of TIR by BCDF, or approximately 6% of the issued and outstanding shares of TIR after conversion (approximately 5% assuming conversion of all debentures issued by TIR at closing). Accordingly, assuming conversion of BCDF's Debentures and including shareholdings prior to the private placement, Discovery Capital would have ownership and control or direction over approximately 18% of the issued and outstanding shares of TIR assuming conversion of its Debentures only (approximately 13% assuming conversion of all debentures issued by TIR at closing). The warrants purchased by BCDF are exercisable over three years at an exercise price of $1.50 per share. BCDF's subscription was made for investment purposes. Discovery Capital may acquire ownership of or control or direction over additional securities of TIR, or dispose of securities of TIR, as circumstances or market conditions warrant or arise.

About Discovery Capital Corporation

With nearly 20 years of venture capital experience in British Columbia, Discovery Capital, through its wholly owned subsidiary, Discovery Capital Management Corp., is a venture fund manager and investor specializing in: information technology, communications, health and life sciences, and other advanced technologies. We have proven expertise in strategic planning, management development, innovative financing strategies, corporate governance and positioning for liquidity. Discovery Capital Management Corp. is the manager of British Columbia Discovery Fund (VCC) Inc., a British Columbia venture capital fund that has raised over $29.0 million to date.

John McEwen, Co-Chief Executive Officer

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

  • Discovery Capital Corporation
    Charles Cook
    (604) 683-3000 ext. 102
    Discovery Capital Corporation
    Harry Jaako
    Chairman and Co-CEO
    (604) 683-3000 ext. 105
    Discovery Capital Corporation
    John McEwen
    President and Co-CEO
    (604) 683-3000 ext. 106
    (604) 662-3457 (FAX)