www.itemus.com
Vancouver Sun 02/19/00
Canada is at risk of becoming a technology sweatshop for the U.S. economy, says a Vancouver high-tech pioneer who has teamed with a Toronto company to launch a Canada-wide high-tech incubator.
David Schulz, president of IdeaPark, which was acquired by Itemus Inc. in the lead-up to that company's transformation this week from the gold mining company, Vengold, to an Internet business, said reluctance by Canadians' to finance high-tech startups is driving talent and jobs south of the border.
"There is a real hunger and demand in this marketplace for solutions to this problem, but no one has stepped up to the bat to provide those resources," Schulz said.
"While we have been preaching the Internet for the past five year, we have been so ridiculously slow in moving and adapting to this environment that we are getting brain drain, not because there is a lack of capital, but because we are so risk-averse we don't want to take chances. It's frustrating the hell out of Canadian entrepreneurs."
Itemus, which still trades under the name Vengold, made the switch a few days after Placer Dome Inc. sold its 23.6 million Vengold shares to a group of investors that include U.S. technology funds.
On Thursday, 42.1 million Vengold shares changed hands in the largest one-day total of any TSE-listed individual stock since 48.6 million American Gem Corp. shares traded April 7, 1999, when American Gem announced its reinvention as an e-commerce company.
Schulz's concerns are ones that have been resonating among high-tech boardrooms and basement startups as homegrown Canadian ideas are forced to go to the U.S. for funding.
"We're trying to create opportunities for young people who are being lured to the states" said Schultz, a just turned-30 entrepreneur with several successful startups behind him, including the national Internet service provider Internet Direct.
"In the States, startups get 18 times more capital access than in Canada. A startup in the states will get $22 million. Here we'd be lucky to scratch up $1 million.
"The Americans are ready to take risks and it's paying off for their economy."
Schulz cited two high-profile Canadian examples, MegaDepot, now Onvia and Home Grocer -- successful Internet companies that had to move to Seattle to find financing.
"They're in Seattle because that's where they got access to capital. Those business plans came across a whole bunch of desks and nobody stepped up to the plate."
Schulz said Canada has some of the top high-tech entrepreneurial talent in the world -- brains that are going to build the next economy.
"We have some of the smartest people in the world, but we have to support them here with entrepreneurial spirit, otherwise we're going to become a technology sweatshop for the U.S."
The newly reinvented Itemus, armed with $75 million in cash and equities, has put together a team of high-tech specialists that include Jim Tobin, former executive vice-president of BCE Emergis, a $15-billion Canadian e-commerce company, technology analyst Mark Maybanks from Yorkton Securities Inc., Schulz and his partners from IdeaPark and others.
Schulz said the company will apply its talent and money to assisting high-tech startups.
"We have the knowledge, we have the capital and a bunch of brains that can be moved into different organizations.
"Our mandate is technology. We are prepared to take money and apply it to things we know we can build out."
Schulz said IdeaPark, now part of Itemus, will continue to act as an incubator for western startups from its Yaletown base.
Itemus' stock went from $1.48 to a high of $3.22 on Thursday, before dropping back to close Friday at $2.69.
TORONTO, Feb. 18 /CNW/ - Vengold is pleased to announce that it is in the process of finalizing agreements to acquire 100% of Ideapark.com Ventures Inc., 100% of Intrasoft Technologies Inc. and 40% of Teamcast.com Corporation for $3,000,000 cash and a total of 8,492,000 common shares of Vengold.
IdeaPark is an internet and e-commerce incubator company located in Vancouver. Intrasoft is an internet services company and Teamcast.com is an online business community service firm. Both companies are located in Ottawa. Both transactions are subject to the completion of satisfactory due diligence, the settlement of definitive agreements and regulatory approval. Vengold's shares are traded on the TSE (VEN) and on the NASDAQ, OTC (VENGF).
Analyst Conference call with Jim Tobin: 1-800-558-5253 and use access number 14476092.
1. His policy will be to be transparent.i.e news as soon as he can release it.
2. They want the company to have a global reach.
3. They will supply skills as well as capital.
4. They have about 12 deals in the pipeline , from 1/4m start up to a company well down the IPO road.
5. They will concentrate on companies that can dominate globally in their field; financial services; rich media content
6. He sees the company as a "very large value creation vehicle"
7.They are about to hire additional CEO's
From their 1996 Annual Report:
"During 1995, the Corporation issued 28,863,000 common shares and 14,931,500 Series "A" warrants in order to raise $50,515,249. The Series "A" warrants are exercisable at $2.35 and expire June 13, 2000. Under certain circumstances after the completion of the Lihir Gold financing, original holders of the Series "A" warrants were able to obtain Series "B" warrants in exchange for their Series "A" warrants. On November 22, 1995, Series "B" warrants with an exercise price of $1.30 and an expiry date of June 13, 2000 were available to original holders of Series "A" warrants. As at December 31, 1996, 8,700,300 Series "B" warrants had been issued and an identical number of Series "A" warrant cancelled."
Vengold Shares Soar As It Transforms Into Tech Firm
REUTERS - 2/17/00 12:44:00 PM
By Susan Taylor
OTTAWA (Reuters) - Shares in Vengold Inc. [T.VEN] rocketed 70.5 percent Thursday morning as the Canadian mining company transformed itself into an Internet ``incubator' which will help fledgling technology firms get on their feet. The company also unveiled Thursday its new name as Itemus Inc.
The stock added 79 Canadian cents to trade at C$1.91 on the Toronto Stock Exchange, as the company launched its ``e-dream team'. Vengold also topped the most active list of the Toronto exchange with 19 million shares trading. Itemus will use an initial pool of C$70 million in capital, with a pipeline to a further C$50 million, to help Canadian technology firms move onto the world stage. Toronto-based Itemus said it will supply young companies with its facilities, Web and software development resources, funding, management advice and international contacts. The transition from metals to technology follows Vengold's announcement in December that it planned to invest in Internet firms. Vengold chairman Ian Telfer began discussions two months ago with technology analyst Mark Maybanks and Jim Tobin, former president of Hummingbird Communications Ltd. [T.HUM]. Vengold's board has approved the transition, with shareholders expected to give the go-ahead to the change of name and business operations at a meeting in April. Tobin, new chief executive for Itemus, said the firm will announce about a dozen deals, for minority ownership stakes, in the next two months to expand operations. ``We'll be taking some stakes in Web development firms to create a national network of Web developers,' Tobin told Reuters.
``We're in discussions in Montreal and Calgary, to work with local venture capital and business incubator players, to build facilities and develop a joint holding structure in each of those markets -- because we're going coast to coast.' Itemus also plans to open U.S. offices within the next six to nine months, Tobin said. ``We want to have a head of steam in terms of our own activity and deal flow before we announce ourselves on the U.S. stage.' Itemus has already closed two acquisitions that will serve as east and western branch offices. The value of those deals was not disclosed. Vancouver, B.C.-based IdeaPark Inc. has been purchased and that firm's founders -- Rory Holland, David Schulz, and Alison Lawton -- will join Itemus. Ottawa's Intrasoft Technologies Inc. was also bought, with founder Curtis Hollister now with Itemus. Maybanks, a former Yorkton Securities Inc. analyst and Anthony Iantorno, previously with Web technology group CMGI Inc. [CMGI], are also with the firm. Itemus could capitalize on that CMGI link as it plans to strike alliances with similar U.S. incubator ventures such as Idealab! Inc. ``To obtain, call it, the Canadian franchise for some of the U.S. based incubators is one of our deliberate strategies,' Tobin said. ``We would think we would be the logical -- as the biggest Canadian player in this space are out of the chute -- that we would be the logical partner.'
The company plans to focus its support on software applications for networks, financial services, and media content, Tobin said. Reflecting its high-speed technology sector, Itemus plans to link up with schools across Canada, using mentoring programs, for example, to help young entrepreneurs develop business plans. Tobin, the founding president of Bell Canada's new media business BCE Emergis [T.IFM], said several universities taking part in a Bell Canada University Lab program he developed are now interested in working with Itemus. ($1-$1.45 Canadian)
Toronto, Ontario - Feb. 17/00
Ian Telfer, President and CEO of Vengold Inc. announced today the transformation of Vengold Inc. into itemus Inc. (TSE:VEN). He also revelaed the members of the itemus INc. Management team.
Led by CEO Jim Tobin, the Team includes Rory Holland, Mark Maybanks, David Schulz, Alison Lawton, Curtis Hollister, and Anthony Iantorno. The new Canadian company will focus on accelerating Canadian talent and technology onto the world stage thru applied operational expertise and significatn investments, beginning with $70 million of capital. "I am very excited about the creation of this new company. itemus Inc. will provide Canadian high-tech start-ups with the expertise and infrastructure they need to compete globally", said Telfer. Noted Telfer: "The quality of the team we have assembeld to run itemus Inc. is unsurpassed." Jim Tobin, formerly Executive Vice President of BCE is the founder of BCE Emergis, a $15 B Canadian E-commerce leader. Mark Maybanks, comes to itemus INc. from Yorkton Securities Inc. where he was Canada's leading technology analyst. Rory Holland, David Schulz and Alison Lawton are the founders of Vancouver's Idea Park, Western Canada's premier Incubator that is being acquited by itemus Inc. Curtis Hollister is the founder of Intrasoft Technologies Inc. of Ottawa, another company being acquired by itemus Inc. Anthony Iantorno comes to itemus INc. from General Electric, NBC and CMGI with extensive experience in media technologies. "My intention is to make this a true talent magnet within Canada," said Tobin. "This exciting opportunity will serve to provide vital infrastructure for Canadian ideas. itemus Inc. will provide sizable new facilities, world-class Web and software development resources, new knowledge capital, international contracts, and smart capital," he added.
The company's sahres are traded on the TSE (VEN) and on the NASDAQ,OTC (VENGF).
Rory Holland
Rory Holland co-founded InterTrans Logistics (the heart of ITWO on Nasdaq) which grew from 2 employees to over 200 before being sold in 1998. He secured company financing of over $15 million and developed strategic alliances with major ERP software vendors. At the time of its sale at $102 million US, InterTrans had annual sales of $14 million CDN and offices in Canada and the United States. Rory is now a consultant with the law firm Russell & DuMoulin. He is the manager of the Technology Law Group, bridging the gap between business interests and the law.
Dave Schulz
In 1986, Dave Schulz founded his first company, Great Canadian Getaways, which specialized in corporate staff retreats, at the age of 17. Since then, he has founded or co-founded:
ID Internet Direct (1994) - As President and co-founder, developed successful marketing campaigns which made ID Internet Direct the largest Internet Service Provider (ISP) in Canada. Involved in 1995 initial public offering. At time of departure, ID Internet Direct had sales revenues of over $8 million CDN.
Area51 Interactive (1996) - the interactive division of Palmer Jarvis DDB. As President, recruited and trained sales and technical staff. Generated over $1 million CDN in sales revenues in its first year, more than doubled sales revenues in Year 2. Created internet strategies for some of Canada's largest corporations such as BC TEL, Richmond Savings Credit Union, Mohawk Gas, and Pacific Press (Vancouver Sun and The Province). Additionally, Dave is a sought-after interview for television, radio and print. He has been featured on Money Talks, The Bill Good Show, and in the Financial Post (now the National Post) and the Globe and Mail. He has presented to the Canadian House of Commons and COMDEX and has been a guest lecturer for UBC Continuing Education's Internet Marketing diploma program.
Alison E. Lawton
Alison Lawton is the president, director and founding partner of Winfield Capital Corporation (WCC). She has extensive experience in business creation, development, and corporate management. Prior to Winfield Capital Corporation Ms. Lawton was involved in the investor relations and marketing of syndicated real estate, software, film and television offerings. Ms. Lawton's has co-owned and operated a successful business in product merchandising. Her expertise lies in the entrepreneurial aspect of business development and operations and she has diversified background and experience in the capital markets as financier and director. Ms. Lawton attended Concordia University in Montreal and graduated with a Bachelor of Arts Degree in Business Communications and has completed the Canadian securities broker license requirements.
New Homepage
itemus.com
email:
info@itemus.com
Old Homepage and contact info:
200 Burrard Street, Suite 1688
British Columbia, V6C 3L6
Vancouver, Canada
Phone: (604) 664-7050
Fax: (604) 681-9151
Email: gaives@vengold.com
vengold.com
Recent PR's:
biz.yahoo.com
biz.yahoo.com
Jim Tobin CEO
silvan.com
hummingbird.com
turku.eu.net
teledotcom.com
cgi1.netscape.com
internetwk.com
Mark Maybank
yorkton.com
Anthony Iantorno
Anthony Iantorno comes to itemus Inc. from General Electric, NBC and CMGI with extensive experience in media technologies.
Curtis Hollister
intrasoft.ca\company_profile\history&beselected=b_cprof
teamcast.com
Rory Holland, David Schulz, Alison Lawton
ideapark.com
Rory Holland
Co-Founded i2.com
rdcounsel.com!OpenDocument
Dave Schulz
President, Area51 Interactive (1996) - the interactive division of Palmer Jarvis DDB
pjddbi.com
President and co-founder ID Internet Direct(1994)
mydirect.com
Venture Capital Providing the Funding:
Weiss, Peck & Greer
V E N T U R E P A R T N E R S
Suite 3130
555 California Street
San Francisco, CA 94104
Telephone: 415.622.6864
Fax: 415.989.5108
wpgvp.com
Other Startups they Funded
wpgvp.com
RH Capital Associates, LLC
55 Harristown Road
Glen Rock, New Jersey 07452
Robert Horwitz
Managing Member
(201) 444-2850
Itemus,Inc.'s first two acquisitions:
INTRASOFT Technologies
350 Sparks Street, Suite 406
Ottawa, ON, Canada, K1R7S8
Phone:
613.569.1888 (Ottawa local)
1.877.331.4111 (Toll free within Canada)
Email:
General Information:
info@intrasoft.ca
intrasoft.ca
intrasoft.ca\company_profile\partners&beselected=b_cprof
intrasoft.ca\solution_center&beselected=b_soluc
IdeaPark
ideapark.com
ideapark.com
Telephone:604-684-0008
Fax:604-684-0232
Address:Suite 580 - 1122 Mainland Street
Vancouver, BC Canada V6B 5L1
info@ideaPARK.com
ADVISORY: Vengold Inc. -- Keeping the Ideas and Talent in Canada: Announcing the Launch of a new Canadian Venture Capital Internet/E-Commerce Incubator
TORONTO--(BUSINESS WIRE)--Feb. 16, 2000-- The media is invited to a press conference at the News Theatre, 98 The Esplanade, Toronto (416) 361-0070 at 11:00 tomorrow, Thursday, February 17, 2000 to
launch a new Canadian Internet/E-Commerce Incubator company. Members of the Board and senior management will be announced and include a prestigious high-tech executive and visionary - the founder
of Canada's largest E-Commerce company who recently joined the company as CEO, the founders of two of Canada's most successful Internet start-ups, Canada's premier hi-tech research analyst and the former
Head of Media Investments for the largest U.S. incubator. All will be available for questions and interviews.
(Full text of press release from Canadian Corporate News)
US Technology Funds Invest in Vengold
VANCOUVER, BRITISH COLUMBIA--Vengold announced today that Placer Dome Inc. has sold its entire shareholding of 23.6 million common shares of Vengold to a group of investors that included a number of US technology funds led by Weiss, Peck & Greer, LLC and RH Capital Associates.
FOR FURTHER INFORMATION PLEASE CONTACT:
Vengold Inc.
Ian Telfer
(604) 664-7050
(604) 681-9151 (FAX)
Website: www.vengold.com
VANCOUVER, BRITISH COLUMBIA, CANADA, 1999 DEC 10 (NB) -- By Steven Bonisteel, Newsbytes. The gold used to be in "them thar' hills," but today a veteran mining-exploration firm based in Canada suggested its stake might be more profitably invested on the Internet.
Vengold [TSE:VEN] of Vancouver, B.C., announced that it had surveyed the Internet scene and is recommending to its shareholders that its current holdings of cash and securities valued at more than $70 million (CDN) be used to leverage investments in Internet startups.
"Vengold has identified the need for a significant pool of capital targeted at the Internet and e-commerce industry and is pleased to announce that in future it will focus on investing its resources in private Internet related companies," the company said in a release. "This new venture will advise early stage companies in all aspects of their development, including strategic technical and capital markets."
As part of the new focus, the company is taking steps to add high- tech help to its board of directors, announcing the appointment of Dennis Wing, director of international operations for a US investment bank Fahnestock & Co. Inc.
Ironically, the Canadian holding company - Fahnestock Viner Holding Holdings Inc. [TSE:FHV.A] - under which Wing's investment bank operates, began in British Columbia as Sheep Creek Gold Mines in 1933, but Wing told Newsbytes the gold-mining backgrounds are a coincidence, particularly since he's not joining the Vengold board as a result of any relationship with Fahnestock.
Instead, said Wing, he brings experience that includes 18 years with First Marathon Securities Inc., of which he was a founding partner and board member, and a technology-investment track record that includes a spot on the board of secure-commerce software company Cryptologic Inc. [TSE:CRY] of Toronto.
In what he called another coincidence, Wing was also named today to the board of WaveRider Communications Inc. [OTCBB:WAVC], a wireless data communications developer with office in Toronto. "I can tell you that you won't see two more (appointments) tomorrow," Wing joked.
Vengold enters the Internet venture-capital business as no stranger to risk. The company has invested in mine exploration in development around the world for decades, with its largest stake in recent years being a share of the Lihir Gold Mine in Papua New Guinea, an investment reduced in September through the sale of 95 million shares that helped it pay off some $85 million (US) in debt.
The company said it plans to convene a meeting of shareholders early in 2000 to approve a new company name and other issues related to the switch to backing Internet investments.
Vengold can be found on the Web at: vengold.com
Reported by Newsbytes.com, newsbytes.com
Vengold Announcement 12/10/99
Vengold has identified the need for a significant pool of capital targeted at the internet and e-commerce industry and is pleased to announce that in future it will focus on investing its resources in private Internet related companies. This new venture will advise early stage companies in all aspects of their development, including strategic technical and capital markets. To assist in the implementation of this shift in strategic focus it has engaged two technical consultants with considerable experience in this area. Operations are expected to commence in early 2000.
As part of this change and subject to regulatory approval, Dennis Wing, Director of International Operations, at Fahnestock & Co. Inc., a U.S. investment bank, has been appointed to the Board. Mr. Wing was a founder and Director of International Finance at First Marathon for over 18 years and is director of a number of technology companies. Vengold currently holds cash and securities valued in excess of Cdn.$70 million. The implementation of this strategy will allow Vengold shareholders to participate in the rapid growth of the internet sector via investments in private companies not normally available to the public. The company intends to convene a meeting of shareholders early in the new year to approve a new name and other related matters associated with this change. |
