BC Advantage Raises Over $2 Million of $10 Million Allocation

Vancouver, May 26, 2004 - BC Advantage Funds (VCC) Ltd. ("Advantage"), one of the fastest growing funds in the history of British Columbia, has raised over $2 million of its $10 million 2004 tax credit allocation, with more than $1 Million being received in the last two weeks. The BC Government has allocated sufficient tax credits to Advantage to allow it to raise $10 million in equity capital for each of the 2004, 2005 and 2006 tax years. These tax credits provide Advantage investors with a 30% refundable tax credit on investments of up to $200,000 per year (maximum $60,000 annual tax credit). Combined with the $12.3 million Advantage raised for the 2003 taxation year, and its upcoming acquisition of Qwest Emerging Biotech (VCC) Funds, Advantage now has the ability to grow to over $46 million in equity capital within the next three years.

Jim Heppell, President and Life Sciences Fund Manager of Advantage stated "I believe that the recent acceleration in our fundraising is a result of our investors and investment advisors coming to understand that Advantage will likely sell out its $10 million 2004 tax credits well before the end of 2004. Right now, there appears to be much more demand for our offering than the $10 million tax credit allocation we have received from the BC Government for 2004."

In other news, Protox Pharmaceuticals Inc. ("Protox"), an Advantage portfolio company, recently completed an interim financing of $2.2 million at $0.50 per share. The valuation of Protox set by this financing represents an unrealized gain of 127% on Advantage's investment in Protox in its seed round. Protox has also announced that it is going public through a qualifying transaction with SNB Capital Corp. and has filed a prospectus to raise an additional $3 million concurrent with its listing on the TSX Venture Exchange.

Protox is a life science company developing engineered toxins to selectively destroy cancer cells, while leaving healthy cells unharmed. Working with Johns Hopkins University and the University of Victoria, Protox has demonstrated the effectiveness and safety of its technology in animal models. In approximately 18 months, Protox expects to file an IND with the FDA to allow it to treat men with localized prostate cancer with toxins engineered to selectively destroy prostate cancer cells. Protox is also carrying out pre-clinical studies on using its engineered toxins to selectively destroy lung cancer, non-Hodkins lymphoma and breast cancer cells.

For more information about Advantage, please review our prospectus, visit our website, access our one page introductory brochure, or contact our Vice-President, Sales and Marketing, Ray Matthews at ray@bcadvantagefunds.com or 604.818.7778.

About Advantage

Advantage is an early-stage life sciences and technology fund that offers anyone in BC the opportunity to participate in returns from some of our Province's most promising young technology and life science companies and to receive a 30% refundable tax credit from the BC Government. Advantage was co-founded by Dr. Don Rix, Chairman of the Board; Frank Holler, CEO and Chairman of the Investment Committee; Jim Heppell, President and Life Sciences Fund Manager; Dr. Basil Peters, Technology Fund Manager; and David Raffa, COO and Investment Manager.

« Back to News