Having closed its first institutional round of venture financing in July, Norton Motorcycles Inc. of Eden Prairie, Minn., plans to raise between $20 million and $25 million in an second round this October.
The company, which has been in existence since 1898, obtained a listing on the NASDAQ OTC Bulletin Board April 16. Hallmark Properties Inc. acquired the assets of then-Norton Motors International and changed its name to Norton Motorcycles Inc. shortly thereafter.
NMI Investments LLC, an investment entity conceived solely to finance Norton Motorcycles, committed $4 million in private equity as well as a $1 million bridge loan in July. NMI General Partners Robert Kilpatrick and John Tastad currently serve as Norton’s senior management, and occupy seats on the company’s board of directors.
“We intend to bring the company out to market and attract new investors,” said Kilpatrick, chief executive. “The proceeds will fund operations for three new motorcycle prototypes.”
Kilpatrick added that the company is seeking U.S. and European-based venture firms for the upcoming round. Norton will also likely recruit a strategic partner.
“We would like to beef up the board, and have recently changed our accounting practices and have hired a big firm,” he said. “We are going to get this company into tip-top shape.”
Kilpatrick has worked with several motorcycle and Internet start-up companies including Harley Davidson, eLoan and Quicken. Prior to forming NMI, Tastad was founder and CEO of Energy Solutions International.
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