Difference Capital Announces Monetizations and Plans for Debt Repayment
TORONTO, Jan. 09, 2019 (GLOBE NEWSWIRE) — Difference Capital Financial Inc. (“DCF” or the “Company”) (TSX:DCF), today announced that its most successful investment holding to-date, Vena Solutions Inc., has secured a $115 million equity financing (the “Transaction”) which will result in a material increase to DCF’s net asset value (NAV)1.
This transaction will contribute an additional amount of approximately $8.3 million (or about $1.43 per share) to the Company’s NAV. The current valuation of Vena represents an approximate 4x return on DCF’s investment.
Management notes that, in addition to our publicly traded mark-to-market positions, potential changes to its other private holdings are still being finalized for the year ended December 31, 2018. The Company expects to release its 2018 audited financial statements in mid-March 2019.
“Vena is a highly successful innovator in the financial planning and analysis software sector,” states Tom Liston, Chief Investment Officer of Difference Capital. “Today’s announcement, a significant investment by two top-tier growth equity firms, serves as validation of the company’s growth potential and strong management team. We are proud to have financed Vena with their first significant investment five years ago.”
For further information on the transaction, refer to Vena’s press release issued today.
In connection with the Transaction, DCF monetized a portion of its Vena common share holdings. In combination with other recent transactions, this inflow has resulted in the Company currently having a cash position of approximately $13.4 million, up from $0.2 million at the quarter ended September 30, 2018. The Company plans to use a portion of these funds to retire early, by almost 1 ½ years, its outstanding $6.7 million of private debt and thus become debt free.
Please refer to the section regarding forward-looking statements which form an integral part of this release.
About Difference Capital Financial Inc.
Difference Capital Financial Inc. invests in and advises growth companies. We leverage our capital market expertise to help unlock value in technology, media and healthcare companies as they approach important milestones in their business lifecycle.
Caution Regarding Forward-Looking Statements
Certain statements contained in this press release may be deemed “forward-looking statements.” Forward- looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” “scheduled,” “will seek,” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Although DCF believes that the expectations reflected in those forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. DCF undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
1 Net asset value (“NAV”) is a non-IFRS financial measure and is calculated by subtracting the aggregate fair value of the liabilities of the Company from the aggregate fair value of its assets. Net asset value per share is calculated by dividing NAV by the number of common shares outstanding as at the measurement date. The term net asset value per share does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies.