Just got of the phone with Mr. Staudt. Anyone that had concerns in the past of JDX having a lack of deal flow and problems competing against large U.S had their fears put to rest today.
First.....the Enviromation is just a small deal. JDX saw the chance to invest a small amount to buy a growing company and they couldn't pass it up. JDX has not released the cost yet but I was told it was small.
Two...the two fund alliances are amazing news.
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....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.
I was told that when the information is released on these guys I would be very impressed... they are the biggest investor in Medsite.com so we already know they are a player. Argentum is working on a new web page and it should be out soon. Mr. Staudt anticipates that the majority of the deals going forward in Argentum are going to be larger than $2-3 mill which means JDX can pick and choose the deals they want to participate in. I was also informed that the guys at Argentum haven't lost money on any deal in over 10 years.
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.
Not only do we get an investment in a fund that just got a bunch of new deals but we also get to pick and choose the deals we want to invest in.
We now have two large teams bring JDX deals. The deals they bring JDX are good because they are putting their own money in them. JDX can sit back and invest in the best of the best. It doesn't get much better than that....
Best Regards
KEITH |
