Private Equity Week Wire

GRAND RAPIDS, MI — Mercantile Bank Corp. (Nasdaq: MBWM), one of the nation’s fastest growing banking organizations, announced that it has privately placed 180,000 shares of common stock with a small number of individual investors, including a member of Mercantile’s Board of Directors and members of his family, an organizer of the Bank, and several other residents of the Grand Rapids area. The private placement raised $3.1 million in capital, net of transaction costs. The sales price of $17.60 per share was based on the closing bid price quoted on the Nasdaq National Market for the trading day prior to the closing.

NEW HAVEN, CT — Inc. (NASDAQ: DSLN), a leading, nationwide, direct provider of high-speed Internet access solutions for small and medium-sized businesses, today announced that a consortium of investors, led by Columbia Capital, and including Charles River Ventures, Hunt Private Equity Group, and National Investors Group, has agreed to invest $15 million in convertible redeemable preferred stock.

The new investment, which has been approved by the board of directors, is in addition to a previously announced $15-20 million financing from VantagePoint Venture Partners. The combined $30-35 million investment will position the company to accelerate its growth plans and is still expected to fund the company through cash flow positive, based on the company’s current plans and projections.

CAMBRIDGE, MA — Leveraging the potential market for its proprietary protein crystallization technology, Altus has raised an additional $15 million in the second closing of its Series B private financing. In the first closing, Nomura International plc and U.S. Venture Partners served as lead investors. Follow-on investors included CMEA Ventures and China Development Industrial Bank (CDIB), with additional participation from Hotung International Company Limited and the Palladian Group. Together with the initial private placement, this series marks the year’s largest private investment in a New England-based biopharmaceutical company.

PALO ALTO, CA & WALTHAM, MA — Advanced Technology Ventures (ATV), a leading bi-coastal, early-stage venture capital firm, announces the closing of ATV VII, an $800 million venture capital fund. As with its prior funds, ATV will invest this new capital in early-stage technology companies focused in the communications, Internet infrastructure, software, and healthcare markets primarily in the United States, with select investments in Canada, Europe and Israel. The new fund is double the size of ATV VI and represents the firm’s largest fund to date, bringing the firm’s total assets under management to $1.5 billion.

— Gemcom Software International Inc., a leading provider of information technology solutions for the mining and mineral exploration industry, today announced that it has secured commitments of financing for $1 million from RoyNat Capital Inc., and $250,000 from the Business Development Bank of Canada (BDC).

The financings are in the form of convertible debentures, with interest set at 8% per annum. Under the terms of the agreements, the debentures are repayable in four years and can be converted to common shares at $0.35 per share. If the debentures are repaid in cash and are not converted into common shares, then an additional 8% interest will be due on the principal.

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