MDS Capital Corp. has entered into an agreement with Stilco Investments Ltd. whereby to acquire all of the shares of Canadian Venture Capital Management Corp. (CVCMC) that are owned by Stilco.

It is currently anticipated that the deal will become effective on or after October 17, after all regulatory requirements have been met, including approval from securities regulators.

After the deal is completed MDS Capital will become the sole shareholder and operator of CVCMC. Medical Innovations Management Inc. (MIM) is the manager of BC Medical Innovations Fund (EVCC) Inc. and a wholly owned subsidiary of CVCMC. The completion of the MDS Capital deal will therefore also result in an indirect change of control of MIM.

Stilco is controlled by Dr. Calvin R. Stiller, who is resigning as chairman and CEO of CVCMC and as a director of BC Medical Innovations Fund.

MDS Capital currently owns 50% of the shares of CVCMC and has assisted in the management of BC Medical Innovations Fund since 2004. Upon completion of the transaction, MDS Capital will indirectly own 100% of MIM, which will continue to manage the fund under the existing management agreement and fee arrangement. MIM expects minimal changes in the day-to-day operations of the fund.

MIM views the increased involvement of MDS Capital as a positive development for shareholders of BC Medical Innovations Fund, with the opportunity for MDS Capital to further leverage its substantial experience in managing investment funds to create shareholder value.

MDS Capital and its affiliates operate one of the largest venture capital companies in North America focused exclusively on private health care and life sciences companies (including those involved in pharmaceuticals, biotechnology, medical services and information technology) at both early and later stages of development.

MDS Capital provides capital by raising funds in public retail and private institutional funds. With approximately $1 billion Canadian in assets under management, MDS Capital and its affiliates currently manage or provide services to seven funds.

BC Medical Innovations Fund is a labour sponsored investment fund that focuses exclusively on the health science sector in British Columbia.