Taken from the new iTech Capital web page. This helped understand how our Co. got into bed with Argentum and MF Capital to share their prospects. Recapped from Nov.11.99 press release also.
The iTech Capital name reflects the transformation that has taken place
over the past year from a company with its roots in the mining industry
to a company that is committed to building shareholder value by
participating primarily in the Internet B2B and telecommunications sectors.
In this New Economy, iTech?s goal is to wisely deploy its assets for the
benefit of its shareholders. iTech, through its experience, expertise and
strong strategic alliances, is well positioned to identify, invest in and assist
in the development of emerging technology companies.
While opportunities abound, iTech believes the real key to building
significant shareholder value is being selective and funding only those
companies that have strong management teams, persuasive business
models and reasonable valuations. In addition, iTech expects to fund only
those companies that have the potential to emerge as significant and
dominant players in their respective business sectors. To date, iTech is
confident it has made such investments.
STRATEGIC PARTNERS
In November 1999, iTech entered into an agreement 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. iTech has granted Argentum
500,000 options to purchase its shares for a five-year period. Argentum
has agree to offer iTech the opportunity to co-invest with Argentum in
amounts ranging from US$500,000 to US$1,000,000, at iTech?s option,
in all transactions in which Argentum has the opportunity to invest at least
US$3.0 million. Since the two parties entered into the agreement, iTech
has co-invested in one transaction, HorizonLive.com.
Also in November of 1999, iTech Capital entered into an agreement 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 led
by four experienced investment professionals and has invested/committed
approximately US $100 million over the last 20 months. An affiliate of
MFPC, MFPCVI, Inc., as general partner of MF Private Capital
Ventures, LP (the Fund) is raising capital for the Fund. Manufacturers Life
Insurance Company (USA), the indirect majority owner of MFPC, is
participating in the Fund by contributing a percentage of its originals deals,
that were sourced and are managed by an affiliate of MFPC, as its equity
contribution.
iTech has agreed in principle to invest US $1.5 million in this new Fund,
and MFPCVI, Inc. has agreed that iTech will be offered an opportunity to
co-invest in the Fund?s investments in emerging companies. William Staudt
will join the Fund?s Advisory Committee. The majority of MFPC?s
investments are in communications infrastructure, technology, medical
devices technology, and Internet B2B companies. Since the two parties
entered into the agreement, iTech has co-invested in one transaction,
Bizfon Inc.
In summary, our strategic alliances will be at the core of the company's
investing decisions. It is a well known fact that the "best idea" or "best
technology" does not always carry the day. We are operating in an
environment where the lifecycle of companies has been compressed by
2-3 times and emerging companies are in need of ever larger amounts of
capital. In alliance with Argentum and MFPC , we offer not only the
financial resources required to grow world class companies but the
contacts, and competitive drive required for success
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