Welcome!

News Feed Item

The Business, Engineering, Science & Technology Discoveries Fund Inc. Announces Annual and Special Meeting of Shareholders

TORONTO, ONTARIO -- (Marketwired) -- 02/03/14 -- The Business, Engineering, Science & Technology Discoveries Fund Inc. (the "Fund") (CSE:VC) announced that it has called an annual and special meeting of the Fund (the "Annual and Special Meeting") to consider, in addition to annual business, a transaction (the "Transaction") proposed to address the interests of shareholders of the Fund. The meeting is expected to occur on March 28, 2014. The Transaction must be approved by the holders of the Fund's Class A Shares and Class L Shares at the Annual and Special Meeting and is subject to approval by the Fund's Independent Review Committee and all necessary regulatory and stock exchange approvals.

The Transaction would enable the current shareholders of the Fund to exchange their shares for units (the "Units") in a newly formed limited partnership (the "Limited Partnership") with similar investment objectives and strategies as the Fund but that is not subject to the requirements and investment restrictions of a Labour Sponsored Investment Fund ("LSIF"). The shareholders of the Fund would have the opportunity to participate in a new publicly traded Limited Partnership that will provide its investors with exposure to the Fund's current investment portfolio and is expected to provide the following benefits:


--  regular distributions of income, 
--  exposure to additional venture capital investments with fewer investment
    restrictions, 
--  lower expenses of the fund, 
--  the potential for additional capital raising, 
--  stable capital which will permit the manager to optimize the exit value
    potential, 
--  liquidity through trading, 
--  a new compensation structure for management of the Limited Partnership,
    including a priority profit share and carried interest, that is intended
    to better align the interests of management with the interests of the
    holders of the Units rather than a conventional management fee. 

Since the Ontario government phased out the Ontario tax credit program for LSIFs at the end of the 2011 taxation year, and the Federal government's announcement that it will phase out the federal tax credit for LSIFs by 2017, management and the board of directors of the Fund (the "Board") have been evaluating the Fund's options. The Board reviewed and considered the advantages and disadvantages of a number of potential alternatives to the Transaction, including maintaining the status quo and an early-wind-up, and concluded that the Transaction would be in the best interests of the shareholders of the Fund.

The Board and the manager of the Fund, B.E.S.T. Investment Counsel Limited (the "Manager"), are of the view that winding up is not in the best interests of the Fund's shareholders. The Manager believes that the Fund holds a high quality portfolio of investments in private companies; however, the Fund would be unable to liquidate those investments quickly at a price that reflects their intrinsic values. It is difficult to predict when liquidity will be achieved in the early stage equity investments in the Fund's venture portfolio.

The Ontario Ministry of Finance has granted an advance ruling with respect to the Transaction providing that amounts in respect of the provincial tax credits will not be required to be repaid as a result of the execution of the Transaction (the "Ruling"). On the basis of the Ruling, the Manager further understands that no federal tax credit amount should be required to be repaid in connection with the Transaction. There will be no redemption fees for any of the Fund's shareholders in connection with the Transaction.

Redemptions of the Class A Shares of the Fund are suspended effective immediately pending implementation of the Transaction, if approved, based on careful consideration by the Board of the best interests of all of the Fund's shareholders, the Fund's liquidity situation, market conditions and the anticipated requests for redemptions by holders of the Fund's Class A Shares.

The Fund is currently preparing an information circular in connection with the Annual and Special Meeting which will disclose further details of the Transaction and the Board's recommendation that shareholders of the Fund vote in favour of the Transaction. The Circular will be distributed to shareholders for their consideration in the ordinary course.

About The Business, Engineering, Science & Technology Discoveries Fund Inc.

The Business, Engineering, Science & Technology Discoveries Fund Inc., established in 1996, is registered as a labour sponsored investment fund corporation in Ontario. The Fund's investment focus is primarily on companies capitalizing on the innovative uses of engineering, science and technology.

The Fund invests in eligible companies that are in differing stages of development in a variety of high growth industries which may include telecommunications, information technology, computers and life sciences.

Certain statements contained in this press release may include forward-looking information with respect to the Fund's operations and future financial results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. Further information can be found in the disclosure documents filed by the Fund at www.sedar.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, will discuss how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He will discuss how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...