Discovery Capital Corporation

Discovery Capital Corporation

July 06, 2007 13:06 ET

Discovery Capital Special Committee of the Board Issues Clarification

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2007) - The Special Committee of the Directors of Discovery Capital Corporation ("Discovery") (TSX VENTURE:DVY.Y) is issuing this press release to clarify certain of the statements of Lions Capital Corp. in its press release of July 5, 2007 concerning Discovery Capital Management Corp.

The Special Committee wishes to reinforce to shareholders of Discovery that the offer from Lions Capital for the purchase of the shares of Discovery's wholly owned subsidiary, Discovery Capital Management Corp., is subject to a number of conditions which may or may not be satisfied or waived, as well as to ongoing discussions related to such matters as the provision of investment management services with respect to the residual assets of Discovery.

The Special Committee is endeavoring to clarify with Lions Capital certain of the terms and conditions of the offer from Lions Capital. The Special Committee is also having continuing discussions with management of Discovery concerning its previously announced proposal to purchase the shares of Discovery Capital Management.

The Special Committee would also remind Discovery shareholders that, with approximately 50 million shares outstanding, the impact on net asset value (NAV) per share of these competing bids for Discovery Capital Management Corp. is in the range of $0.01 per share of Discovery.

No agreement has been entered into with Lions Capital and an agreement with Lions Capital might not be concluded.

About Discovery Capital:

With over 20 years of venture capital experience in British Columbia, Discovery Capital is a venture fund manager through its wholly owned subsidiary, Discovery Capital Management Corp., and venture capital investor specializing in: information technology, communications, health and life sciences, and other advanced technologies. Discovery Capital has 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 $42.8 million to date and has investment interests in eleven developing technology companies.

For more information about Discovery Capital Corporation, please visit

On behalf of the Special Committee of the Board

Randy Garg

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 Company cautions that actual performance 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 Company currently foresees.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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