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Valucap announces fiscal 2011 results

^{Published on 2011-07-29 14:50:52 - Market Wire}
 

TORONTO, July 29, 2011 /CNW/ - Valucap Investments Inc. (TSXV: V) ("Valucap") announces results for its fiscal year ended March 31, 2011. Highlights of the results, which are expressed in Canadian Dollars, are:

• Valucap had a net loss of $857,044 on revenue of $39,000 in the year compared to a loss of $145,412 on revenue of $32,500 in the same period last year.
• The loss in the current year included a charge for Valucap's share of the losses of its investee company, 80/20 Solutions Inc, ("80/20") of $535,691.
• The Company completed a private placement on April 1, 2010 raising $500,000 in cash.
• In the quarter, Valucap converted receivables from 80/20 into 371,429 convertible preferred shares of 80/20 bringing the Company's holdings of 80/20 to approximately 37%.
• On November 30, 2010 Valucap invested $513,200 for a 6% interest in Baanto International Ltd..
• On January 13, 2011, Valucap made an initial investment of $150,000 in Bee Media Inc. ("Bee Media") with an option to invest up to an additional $850,000.  The initial investment is for less than 10% of the voting shares of Bee Media.
• On January 25, 2011, Valucap acquired an option to acquire 225,365 Common Shares, 792,041 Series A-1 Preferred Shares and 2,698,394 Series A-2 Preferred Shares in Elliptic Technologies Inc. ("Elliptic") from Valucap's principal shareholder, NorthStar Bancorp Limited ("NorthStar"), for $429,011.  This investment will represent 23% of the voting stock of Elliptic.

After March 31, 2011 the Company has continued to be active:

• On May 17, 2011, Valucap made an investment of $250,000 in convertible debentures of Outside Intelligence Inc ("OIQ"), a private company.  These debentures accrue interest at 15% are due on February 28, 2013, and are convertible into OIQ shares based on a formula which is a function of valuation at the time of conversion.
• On May 31, 2011, the Company exercised its option to acquire the Elliptic shares from NorthStar by issuing 4,290,011 units at $0.10 per unit.  The units are comprised of 4,290,110 common shares and 4,290,110 warrants, each enabling the holder to acquire a common share at $0.16 for 18 months
• On June 20, 2011, Valucap invested an additional $100,000 in shares of Bee Media.

"It was a busy year with the completion of the 80/20 investment and the addition of two other investments during the year.  We followed that up with three more investments subsequent to the year end." said Jeffrey Watts, President and Chief Executive Officer of Valucap.

Valucap's audited financial statements and related management's discussion and analysis ("MD&A") for the quarter are available to the public at [ www.sedar.com ] and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.

About Valucap

Valucap is an investment issuer and is interested in making investments in emerging technologies and markets. Valucap intends to become a leading small cap Canadian equity company that specializes in investing in commercialized and undercapitalized companies that have high growth potential.  Specifically, Valucap seeks to generate above average investment returns on its capital by providing "transaction driven" growth capital to micro and small cap companies which operate within preferred industry sector classifications.  The common shares of Valucap are currently listed on the TSX Venture Exchange.

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding future plans and objectives of Valucap, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.