Quiet Exits by VCs

Late last week, the pending sale of MacLean Watson portfolio company Sitebrand to capital pool company Pretium was quietly announced. Pretium is a capital pool company with approximately $300,000 (According to filings) in cash. If the deal goes through, the company intends to raise apporximately $1.5 million to fund operations of Sitebrand going forward.

This is an interesting example of how VCs can use junior exchanges to fuel some growth for portfolio companies when, for one reason or another, continued venture capital investing is not appropriate. Many believe that the TSX Venture Exchange has built a solid list of quality junior companies, and has shed its reputation as a dumping ground. Future filings will provide some insight into what stake management has retained, among other matters.