BC Advantage Funds (VCC) Ltd. announced this morning that it is temporarily suspending redemptions of shares of the Advantage Venture Fund (AVF) and the Advantage Growth Fund (AGF).
Frank Holler, CEO of BC Advantage states “Over the past six years we have built what we believe to be a strong portfolio of emerging technology, life science and clean technology companies and have met all redemption requests to date. Many of our portfolio companies are now achieving or approaching material milestones; however, continuing adverse financial markets for emerging companies have made it difficult for us to achieve liquidity on our investments at reasonable valuations. We believe it is in the best interests of our shareholders to temporarily suspend redemptions until exits can be achieved at prices more reflective of true enterprise values”.
Under the Small Business Venture Capital Act (SBVCA) only monies from investment income, capital gains and the proceeds of disposition of investments held for five years or more may be used to finance redemptions.
The AVF and AGF do not currently have sufficient funds allowable under the SBVCA to meet their redemptions. Upon achieving sufficient liquidity, the AVF and AGF will notify their shareholders when redemptions have been reinstated and will process redemption requests in the chronological order the shares became redeemable under the SBVCA.