Toronto, February 19, 2004. VenGrowth Capital Partners Inc. today announced venture investments totaling CDN$20 million in two private companies – Kadmus Pharmaceuticals Ltd. (“Kadmus”), and Futurecom Systems Group Inc. (“Futurecom”).
Kadmus: Biopharmaceutical company expanding Canadian operations and developing leading drug candidates
Kadmus is a biopharmaceutical company focused on developing therapeutics for pain, obesity and other disorders of the central nervous system. A CDN$10 million investment by the VenGrowth Advanced Life Sciences Fund led a recent CDN$17.9 million Series A financing round in Kadmus. VenGrowth partnered with six other leading venture capital firms from the US, Canada and Singapore as part of the financing round.
Proceeds will be used to finance the expansion of Kadmus’ Canadian operations and advance the development of its product portfolio, including completion of a Phase II clinical trial of KDS-2000 - the company’s lead drug candidate. KDS-2000 is a topical formulation that selectively targets peripheral pain receptors and should lead to fewer side effects associated with drugs taken orally to treat pain. Kadmus’ clinical pipeline also includes novel products for appetite control, obesity and inhibiting fatty acid amide hydrolase (FAAH).
“We were attracted to Kadmus by the potential of its products in the market, including a very promising program for appetite control using oleoylethanolamide (OEA),” said Jeff Courtney, VenGrowth General Partner and Co-Manager of the VenGrowth Advanced Life Sciences Fund. “A successful drug being deployed in this area would represent a breakthrough with blockbuster potential.”
Pre-clinical evidence suggests that OEA may be an important regulator of appetite, obesity and fat metabolism. The World Health Organization claims that the “obesity epidemic” is one of the “most blatantly visible – yet most neglected – public health problems”. By the year 2000, there were an estimated 300 million obese adults worldwide.*
“We are very pleased VenGrowth has led the way in this key round of financing as we move into the next important stage of development for our lead compounds,” says Patrick D. Walsh, Chief Executive Officer, Kadmus.
In conjunction with the financing, Jeff Courtney will join the Kadmus Board of Directors.
*Source: World Health Organization: Controlling the Global Obesity Epidemic. 09/03/2003
Futurecom: Expanding radio networks for police, fire and ambulance teams worldwide
The VenGrowth Fund and VenGrowth II Fund have invested CDN$10 million in Futurecom, an established manufacturer of wireless communications equipment. Concord, Ontario-based Futurecom develops proprietary Radio Frequency (RF) equipment that operates in all kinds of harsh environments. Its solutions enhance critical communication channels for police forces, fire departments, paramedics and other public safety organizations - a multi-billion dollar global market.
The standard mobile radio in a police cruiser, fire engine or ambulance cannot be used away from the vehicle, while portable two-way radios suffer from limited range. Futurecom’s MOBEXCOM vehicular radio addresses both problems by enabling police officers, fire fighters and ambulance crew members to communicate with central dispatch while “in pursuit” or “on foot” away from their emergency vehicles. Futurecom’s RF coverage extension solutions are used by major public safety organizations like the Ontario Provincial Police, as well as in some of the most demanding environments such as the subway systems of Toronto, New York and Los Angeles.
“Futurecom represents the type of well-run, late-stage company that VenGrowth is targeting on behalf of its shareholders,” said Tim Lee, VenGrowth General Partner. “Futurecom’s coverage extension solutions are peerless and are relied on by clients that need to maintain the most stringent communication standards. The company has enjoyed a tremendous record of growth since its inception and we will support Futurecom’s future market success.”
“We are pleased to secure VenGrowth’s support to help Futurecom meet its full potential in the growing wireless communications market,” said Mike Wyrzykowski, Chairman and Chief Executive Officer, Futurecom.
“We regard VenGrowth not only as a provider of capital but as a value-added partner with strong management experience,” added Steve Dimitriu, President, Futurecom.
In conjunction with the financing, Tim Lee will join the Futurecom Board of Directors.
About VenGrowth Capital Partners Inc.
With over $1 billion in assets under management, VenGrowth is Canada’s largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth’s accomplished team of seasoned private equity managers has invested over $1 billion in 169 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 160,000 individual investors as well as leading pension funds, insurance companies and family foundations. Portfolio companies benefit from VenGrowth’s substantial experience, resources, and hands-on investment style. VenGrowth is 100% independently owned by employees that are dedicated to generating superior returns for shareholders in its funds. VenGrowth’s offices are located in Toronto (Corporate Headquarters) and Ottawa. VenGrowth Capital Partners Inc. is an affiliate of the managers of the VenGrowth Funds. For more information, please visit www.vengrowth.com.
About Kadmus Pharmaceuticals
Kadmus is a privately-held biopharmaceutical company that commercially exploits endocannabinoid pathways to develop innovative therapeutics. Endocannabinoids are naturally occurring signaling molecules whose functions include regulating pain and body weight. Through licensing activity, development partnerships and internal discovery programs, Kadmus is building a portfolio of compounds with activity against a range of disorders of the central nervous system and metabolic disorders, including neuropathic pain and obesity. For more information, visit www.kadmuspharma.com.
About Futurecom
Futurecom is a wireless Original Equipment Manufacturer (OEM) and turnkey system provider specializing in RF coverage extension of private and public communications networks. Being an OEM design and manufacturing firm, Futurecom supplies state-of-the-art products to a large number of leading RF equipment suppliers and system operators. Futurecom addresses an assortment of analog and digital RF coverage needs ranging from in-building and underground requirements to above ground wide area coverage extension. Futurecom was incorporated in 1991 by a number of industry professionals, with extensive experience in the field of wireless voice and data communications, to address the growing needs associated with RF coverage extension. Selling RF coverage extension products and systems, initially to the North American market, Futurecom has now expanded to include a broad global base of international clients. For more information, please visit www.futurecom.com.
For further information:
Ed Dermit,
Vice President, Marketing
VenGrowth Capital Partners Inc.,
(416) 967-2392
ed@vengrowth.com
