Investing In The Future of British Columbia
BC Advantage Funds. Take Advantage!
Who We Were
BC Advantage Funds ("Advantage") was a venture capital corporation that invests in emerging life science, technology and clean technology companies located in British Columbia.
In 2006, we received the Canadian Venture Capital Association 'Deal of the Year' Award for achieving the highest realized return on a single investment (23.4X return on our investment in Aspreva Pharmaceuticals) of any venture capital firm in Canada. Furthermore, in the three years prior to its redemption (2006,2007, 2008), our Advantage Life Science Fund I provided the highest 5-year returns of any retail fund in Canada (Source: GlobeFund).
Advantage most recent venture capital fund, the Advantage Structured Fund, was primarily raised and invested in the robust pre financial-crisis environment of 2004 – 2007. Since the financial crisis and recession of 2008 – 2009, we have had the challenging task of growing these businesses, keeping them financed despite difficult capital markets, and seeking profitable exits from the investments in a post financial-crisis environment characterized by few (if any) initial public offerings (IPOs), depressed activity in merger and acquisition (M&A) markets, and weakened valuations for emerging technology companies.
In July, 2016, Advantage announced that its Board of Directors had concluded a review of strategic alternatives and determined that a liquidation and dissolution of the Company is the best alternative for maximizing shareholder value. The Board subsequently called an annual and special meeting of shareholders of the Company to approve a number of items, including the voluntary dissolution of the Company under Division 2 of Part 10 of the Business Corporations Act (British Columbia), the settlement of all of the assets of the Company on the Liquidation Trustee (as defined in the information circular in respect of the Meeting) on trust that the Trustee assume and pay all of the liabilities of the Company, and distribute all remaining assets of the Trust rateably to the shareholders of record. The Dissolution Resolution was approved by way of an ordinary and special resolution passed by a majority and at least two-thirds, respectively, of the votes cast by the Company’s shareholders the Meeting.
Dissolution Process and Distribution
Following the Meeting, Advantage settled, transferred and assigned all of its assets to Trust. The Company completed the pay out or otherwise discharged all its liabilities, including any tax liabilities resulting from its incorporation and operation as a venture capital corporation under the Small Business Venture Capital Act (British Columbia). The Company was then be dissolved. The beneficiaries of the Trust will be the shareholders of record of the Company as of the date of dissolution of the Company.
As per the Trust Agreement between B.C. Advantage Funds and the Trust, the trustee has the responsibility to dispose of all or substantially all of the portfolio investments and other assets it received from the Company and distribute the remaining assets rateably to shareholders.
Disposition Plans for Portfolio Investments
The Trustee has commenced plans to dispose of all assets, including the remaining private company portfolio investments. For the majority of these shareholdings, disposition plans have been implemented. However, in several situations, the trustee is aware of significant milestone events which may occur in the near term that may materially increase the value achieved on disposition.
We believe at this time that the disposition of the majority of the assets can be completed on or before the completion of this six month period. No further fees will be paid to the trustee in any event, however, our objectives are both to (1) achieve the dispositions and distribution of capital and income of the Trust to beneficiaries in a timely manner; and (2) maximize the disposition proceeds so as to maximize the capital and income that can be returned to beneficiaries. We will continue to assess our disposition strategies in order to best balance and fulfill both of these objectives.
A further quarterly update to beneficiaries will be provided in late January, 2017.