Valucap Announces Second Quarter Results


TORONTO, ONTARIO--(Marketwire - Nov. 30, 2011) - Valucap Investments Inc. (TSX VENTURE:V) ("Valucap") announces results for its second quarter ended September 30, 2011. Highlights of the quarterly results, which are expressed in Canadian Dollars, are:

  • Valucap had a net loss of $279,369 in the year compared to a loss of $451,328 in the same period last year.
  • The loss in the current period included a charge for Valucap's share of the losses of its investee company, 80/20 Solutions Inc, ("80/20") of $132,630, down from $322,561 in the same period last year.
  • On May 17, 2011, Valucap made an investment of $250,000 in convertible debentures of Outside Intelligence Inc ("OIQ"), a private company. These debentures accrue interest at 15% are due on February 28, 2013, and are convertible into OIQ shares based on a formula which is a function of valuation at the time of conversion.
  • On May 31, 2011, the Company exercised its option to acquire the Elliptic shares from NorthStar by issuing 4,290,011 units at $0.10 per unit. The units are comprised of 4,290,110 common shares and 4,290,110 warrants, each enabling the holder to acquire a common share at $0.16 for 18 months.
  • On June 20, 2011, Valucap invested an additional $100,000 in shares of Bee Media.
  • On September 14, 2011 the Company received final approval from the TSXV for the sale of its 80/20 shares to a third party company. Under this transaction the Company sold 32% of its holdings (9,249,474 common shares) for $415,000. The purchaser has a one year option to acquire the remaining shares held by the Company for $885,000.

Subsequent to September 30, 2011 the highlights are:

  • Tony Cosentino resigned as a member of the board of directors. The board is searching for an outside party to add to the board.
  • Subsequent to September 30, 2011 a related company with an outstanding loan due from Valucap was petitioned into bankruptcy. The trustee, on behalf of this company has made demand of a loan payable of $163,663. Valucap is in discussion with the trustee on repayment of this loan.

Valucap's financial statements and related management's discussion and analysis ("MD&A") for the three month and six month periods ended September 30, 2011 are available to the public at www.sedar.com and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.

About Valucap

Valucap is an investment issuer and is interested in making investments in emerging technologies and markets. Valucap intends to become a leading small cap Canadian equity company that specializes in investing in commercialized and undercapitalized companies that have high growth potential. Specifically, Valucap seeks to generate above average investment returns on its capital by providing "transaction driven" growth capital to micro and small cap companies which operate within preferred industry sector classifications. The common shares of Valucap are currently listed on the TSX Venture Exchange.

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding future plans and objectives of Valucap, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:

Valucap Investments Inc.
Jeffrey S. Watts
President and Chief Executive Officer
1 (416) 364-2591
jwatts@valucap.ca