TORONTO, June 5, 2012 /CNW/ - Difference Capital Funding Inc. ("DCF") (TSXV: DCF) has made an investment in Virgin Gaming, the fast-growing online service that hosts video-game tournaments, leagues and ladders.
The $19.8 million investment, in the form of a convertible debenture, is the first by DCF since its emergence last month as a technology-oriented merchant bank.
"This investment is an exciting and rewarding opportunity for us and our shareholders", Michael Wekerle, DCF's chief executive said.
Mr. Wekerle added: "We have great confidence in Virgin Gaming's business model. In addition, Virgin Gaming is backed by Sir Richard Branson's world-renowned Virgin brand, giving it high recognition in the gaming community."
Rob Segal, Virgin Gaming's chief executive, said: "We are delighted to have Difference Capital as a funding partner. The investment cements our ability to finance future growth in one of the world's fastest growing entertainment sectors."
DCF's investment in Virgin Gaming is the latest in a series of steps aimed at building Difference Capital into a well-capitalized, strongly managed and sharply focussed merchant bank.
DCF secured $21.5 million in funding last month through the initial tranche of a non-brokered private placement. It expects to finalize a secondary financing prior to June 8.
"We expect to announce several other technology-related investments in coming days for the benefit of our shareholders", Mr. Wekerle said.
About Difference Capital Funding Inc.
Difference Capital Funding Inc., formerly TriNorth Capital Inc., is an emerging Toronto-based merchant bank focused on technology-oriented investments. It trades on the Toronto Venture exchange under the symbol DCF.
About Virgin Gaming
Introduced in June 2010 through a partnership with WorldGaming.com, Virgin Gaming is the premier destination for competitive console gamers to meet, challenge and play in head-to head and tournament challenges for cash, points and prizes. With an array of proprietary features, including a Fair Play Guarantee™ (with automatic results validation), a secure payment back end, and a Community Reputation Management System, Virgin Gaming allows gamers of all skill levels from around the world to safely and easily compete in some of their favorite multiplayer games. A leading-edge convergence of competitive online gaming and video games, Virgin Gaming offers robust community features with member pages, clan support, invitational tournaments, stats tracking, news, information, and more. For more information, visit http://virgingaming.com.
VIRGIN and the Virgin Signature logo are trademarks of Virgin Enterprises Limited and are used under license.
This press release contains forward-looking statements regarding future growth, results of operations, performance, business prospects and opportunities involving DCF. Words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of DCF. These statements are not historical facts but instead represent only management's and the board's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve known and unknown risks, assumptions, uncertainties, and other factors that may cause actual results or events to differ materially from what is expressed, implied or forecasted in such forward-looking statements. In addition to the factors the Company currently believes to be material such as, but not limited to, the ability to secure additional financings, the ability to close on future investments, the ability of DCF to achieve its investment objectives, its dependence on the efforts of management, risks associated with fluctuations in net asset value and valuation of DCF's portfolio, its ability to operate on a profitable basis, changes in interest rates, evaluation of its provision for income and related taxes, and other factors, such as general, economic and business conditions and opportunities available to or pursued by DCF, not currently viewed as material could cause actual results to differ materially from those described in the forward-looking statements. Although DCF has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. Accordingly, shareholders should not place any undue reliance on forward-looking statements as such information may not be appropriate for other purposes. DCF does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the proposed transactions and neither of the foregoing entities has approved or disapproved of the contents of this press release.
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Chief Executive Officer of Difference Capital Funding Inc.