JDX.T here's the second:
TORONTO, ONTARIO--Management of Jordex Resources, Inc. (Jordex)
has previously indicated its intention to invest in technology
companies. Earlier today, Jordex announced that it has entered a
letter of intent to acquire 100% of Enviromation Inc., a private
company in the business of designing and manufacturing control
systems for water treatment facilities. In June 1999, Jordex
invested US$1 million in Medsite.com, a leading medical internet
business-to-business company. Subsequent to the investment by
Jordex, Medsite has raised US$30 million in additional equity
through a private placement with institutional investors including
Chase Capital Partners, Bain Capital and Reuters Group Plc. It is
anticipated that Medsite will complete an IPO during the first
quarter of 2000. Brian Hinchcliffe, Chairman of Jordex said, "We
continue to be delighted by the performance of Medsite and we look
forward to a successful IPO."
Jordex's management has been working diligently to identify
additional investment opportunities that will enhance shareholder
value. Toward this end Jordex has agreed to enter into strategic
relationships with two successful equity fund managers.
Agreements in principle are in the process of being documented.
The first agreement in principle is with the Argentum Group, the
general partner of four equity funds totaling approximately US$280
million. Argentum has significant deal flow, a strong investment
record and an experienced internal staff to perform due diligence.
Argentum, through one of its funds, was the initial investor in
Medsite.com and is currently its largest shareholder. Jordex has
agreed to grant 500, 000 options to Argentum to purchase its
shares for a five year period, of which 170,000 options are
subject to shareholder approval of an amendment to its Stock
Option Plan. Argentum has agreed to offer Jordex the opportunity
to co-invest with Argentum in amounts ranging from US$500,000 to
US$1,000,000 at Jordex's option, in all transactions in which
Argentum has the opportunity to invest at least US$2.5 million to
US$3.0 million.
Jordex has also entered into an agreement in principle with MF
Private Capital, Inc. (MFPC), a Boston-based investment group that
is an investment affiliate of Manulife Capital Corporation, an
indirect subsidiary of one of Canada's leading financial services
firms. MFPC is lead by four experienced investment professionals
and has invested/committed approximately US $90 million in the
last 18 months. An affiliate of MFPC, MFPCVI, Inc., as general
partner of MF Private Capital Ventures, LP (the Fund) is raising
capital for the Fund. The Manufacturers Life Insurance Company
(U.S.A.), the indirect majority owner of MFPC, is participating in
the Fund by contributing a percentage of its original deals, that
were sourced and are managed by an affiliate of MFPC, as its
equity contribution.
Jordex has agreed in principle to invest US $1.5 million in the
Fund and MFPCVI, Inc. has agreed that Jordex will be offered an
opportunity to co-invest in the Fund's deals. William Staudt,
President of Jordex, will join the Fund's Advisory Committee. The
majority of MFPC's investments are in communications
infrastructure, technology, medical device technology, and
Internet B2B companies.
In order to position Jordex so that it can effectively offer
supporting services to companies in which it invests, Jordex
intends to further develop relationships and expertise in areas
that can benefit emerging technology companies. One major area is
human resources. Jordex has entered into a consulting agreement
with Dale M. Flanagan, a senior partner with TMP Worldwide, the
parent of Monster.Com. Mr. Flanagan has been active in the
executive search industry for over 25 years. Once formalized, Mr.
Flanagan will also be appointed to the Jordex's Advisory
Committee. Mr. Hinchcliffe stated that, "Dale's experience and
contacts should significantly benefit Jordex's ability to evaluate
prospective investments and to assist the management teams of
companies in which we invest."
Jordex is continuing to review and negotiate investment
opportunities in the technology, internet and telecommunications
industries. Mr. Hinchcliffe further stated "We are excited about
the course we have set for Jordex. We are confident that through
the relationships we have developed we will successfully execute
our corporate objectives. All of this is being done with the goal
of enhancing the value for Jordex shareholders."
ON BEHALF OF THE BOARD OF DIRECTORS
Brian A. Hinchcliffe, Chairman & CEO |
