Canadian private equity firm NorthSpring Capital Partners has completed five new investments to date this year. The firm made investments in: ComTech CNG, a supplier of natural gas refuelling stations in Canada; Eve Medical and Intellijoint Surgical TM, both medical technology companies; ParkLane Holdings, which bought a food and consumer products retailer and wholesaler; and Synergy Disc Replacement, a medical device provider. It also exited two portfolio investments: Pegasus Direct Mail Worx and Exocor. NorthSpring provides risk capital ranging from $250,000 to $1 million for businesses located within a 100 kilometer radius of its Cambridge, Ontario headquarters.
NorthSpring Capital Partners Announces Five New Investments and Two Exits
October 1, 2015
Cambridge, ON – Today, NorthSpring Capital announced their mid-year report on 2015 investment activities in private, small and medium sized business located in Southern Ontario. “We are seeing a surge in traditional companies for sale as baby-boomer and older entrepreneurs finally decide to sell after getting their companies back into good shape since the 2008 financial crash”, says Brian Hunter, President. “At the same time, the number of quality investment opportunities with early stage technology companies is exploding in the Waterloo-Toronto corridor.”
NorthSpring Capital is unique in its focus to provide risk capital in the $250K to $1 million range. Investments are made by way of subordinated and mezzanine debt, convertible debentures, and common and preferred shares. The investments below represent $1,750,000 in new financing to innovative and high growth enterprises.
ComTech CNG (“CTC”) of Milton is the leading supplier of natural gas refuelling stations in Canada. CTC provides turn-key refuelling solutions for a wide variety of applications including natural gas forklifts and ice resurfacers, on road vehicles including natural gas transit buses, school buses, return to base truck fleets, delivery vehicles and automobiles. CTC also manufactures storage and dispensing systems that allow rapid refuelling of vehicles, together with providing replacement parts, service and technical support. CTC’s affiliate, Envoy Energy (www.envoyenergy.ca), is leading the way for commercial truck fleets to convert from diesel fuel to cleaner, more economical compressed natural gas.
NorthSpring Capital’s investment was used to enable a leveraged buyout and to expand into new market segments.
Eve Medical Inc. is a medical technology company located in Toronto. Their first product, HerSwab, is a device that enables women to screen themselves for sexually transmitted infections. Late detection of HPV and chlamydia infections results in 530,000 women developing cervical cancer and 23 million women becoming infertile every year. These outcomes are preventable with screening but current sample collection methods are clinic based, and present significant barriers to screening for many women including lack of time, transport, comfort and cultural sensitivity. By enabling women to collect their own sample, HerSwab can increase screening uptake and follow-up, and reduce mortality. This can improve patient outcomes and reduce costs for healthcare payers.
NorthSpring Capital participated in a seed investment round with other angels and private equity sources to enable the company to complete further clinical studies and commercialization of HerSwab.
Intellijoint Surgical TM, a privately held Canadian medical technology company located in Waterloo, is committed to developing and commercializing low-cost smart tools that enable surgeons and hospitals to improve surgical outcomes by reducing uncertainty and risk, while improving patient outcomes and economics. The company’s proprietary core technology is a miniaturized surgical grade tracking system placed within the sterile field. Intellijoint’s first product, intellijoint HIP TM, will make a significant impact on patient outcomes in hip replacement surgery and health care system costs worldwide. It can reduce unnecessary revision surgeries and costly readmissions while improving clinical outcomes and patient satisfaction. intellijoint HIP is simple, easy to use and provides surgeons with vital intra-operative measurements in real time, enabling proper cup position, equalization of leg length and restoration of hip offset. These critical measurements can assist in the prevention of recurrent instability, hip dislocation and leg length discrepancy.
NorthSpring Capital participated in a recent fund raise with other angels and private equity sources to fund marketing, commercialization and further R & D activities.
ParkLane Holdings, headquartered in Brantford, has acquired an existing retailer and wholesale distributor of value-based food and consumer products.
NorthSpring Capital financing was used to enable a leveraged buyout of the business.
Synergy Disc Replacement Inc. is a global medical device company with offices in Cambridge. Synergy’s artificial cervical replacement disc has revolutionary geometry making it the only viable alternative to fusion in patients with pre-operative spine alignment issues. It is designed specifically to actively correct pre-operative deformity, prevent post-operative misalignment and provide optimal stability for multi-level procedures. Synergy’s solution is currently being used by leading surgeons in Europe and Canada.
NorthSpring Capital participated in an investment round to be used to commercialize current products and expand distribution into new international markets.
Pegasus Direct Mail Worx Inc. (“Directworx”), is a Hamilton based provider of direct mail and other marketing services. Directworx provides clients with creative ideas, full design capabilities, and project management. Capabilities include data processing, variable imaging, offset printing, inkjet addressing, bindery, inserting, automated polybagging and more.
NorthSpring Capital’s financing enabled management to complete a buyout of the company.
Exocor Inc., based in St. Catharines, is North America’s leading provider of high performance welding filler metals used for fabrication, repair and refurbishment across a diverse group of industries. Exocor’s industry-leading expertise and extensive inventory allows it to provide ideal custom solutions for welding fabrication projects.
NorthSpring Capital’s financing enabled Exocor to complete an acquisition of a major competitor.
About NorthSpring Capital:
Established in 2009, NorthSpring Capital Partners is a private equity firm based in Cambridge, Ontario. We focus on providing financing to small and medium sized businesses within a 100 kilometre radius of our office requiring $250,000 to $1 million for management buyouts and business acquisitions and growth capital to commercialize new products and expand your business. Our affiliate, NorthBridge Consultants, provides consulting services to enable clients to obtain a wide variety of government funding including SR & ED.
For further information, please contact: Brian Hunter, President at 519-721-7144 or firstname.lastname@example.org or visit www.northspringcapitalpartners.com
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