Private Equity Week Wire for Friday 12/21

SAN DIEGO — MitoKor today announced that it has raised over $25 million in its latest private equity financings. RBC Capital Markets acted as a placement agent.
New investors include Federated Kaufmann Fund, Orbitex Health and Biotechnology Funds, Palladin Group, China Development Industrial Bank, First Bio Venture Capital, Emerging Growth Management Funds, and DRW Venture Partners. MitoKor’s largest existing shareholders – Alta Partners, Forward Ventures, Domain Associates/3i Bioscience Investment Trust, MDS Capital Corp., and S.R. One – also participated.

HORSHAM, PA — TargetRx, a pharmaceutical marketing information services company, announced today that it raised $10 million from the sale of series C preferred stock in its second round of venture capital financing. The financing was led by Acacia Venture Partners and included previous investors New Enterprise Associates (NEA) and Domain Associates.

AUSTINTEXAS — Journee Software, a leading provider of data integration and management solutions for the customer relationship management (CRM) market, today announced that it has secured $10 million in additional funding. StarVest Partners, L.P. led the round that also included investments from previous investors Adams Capital Management, Kemper Ventures, Murphree Venture Partners, and existing Journee shareholders.

SOUTHBOROUGH, MA — A month after SANgate Systems Inc. CEO Dorel Kempel was forced to resign for violating an existing non-compete clause with former employer EMC Corp., SANgate today announced that Patrick Courtin has joined the company as chairman and chief executive officer (CEO). Courtin joins SANgate from Gensym Corp. where he served as chairman, president and CEO and transformed the company from a customized applications company to a product company selling intelligent, out-of-the-box software to manage real-time networked applications and infrastructure.

SANgate is in the midst of a venture capital fund-raising effort, which has been marred by Kempel’s removal.

— The CPP Investment Board announced today commitments of US$500 million to three private equity funds for investment over the next several years in private companies. The commitments are:

Up to US$200 million to be drawn down over five years by Global Private Equity IV, and a structured co-investment program, sponsored by Advent International Corporation, a global private equity firm; US$200 million to be drawn down over six years by Blackstone Capital Partners IV L.P., a private equity fund sponsored by The Blackstone Group, a New York based merchant bank; and US$100 million to be drawn down over three years by CSFB Global Opportunities L.P.

MONTREAL — Microcell Telecommunications Inc. (NASDAQ:MICT)(TSE:MTI.B.) today announced that it has obtained initial proceeds of C$311 million from its recently completed rights offering and from private share placements with Capital Communications CDPQ Inc. and the Canadian Imperial Bank of Commerce (CIBC).

The rights offering entitled rights holders to subscribe for Class B Non-Voting Shares. Each right permitted the holder to purchase 1.77 Class B Non-Voting Shares at C$2.05 for each full share. Similarly, shares bought through private placement were purchased at the rights exercise price of C$2.05 per Class B Non-Voting Share.
The rights offering was fully subscribed, yielding C$252.1 million in gross proceeds. A further C$58.9 million was raised through private share placements to Capital Communications CDPQ Inc. and the CIBC. In addition, Microcell’s two principal shareholders, Telesystem Ltd. and VoiceStream Wireless Corporation, have up until December 27, 2001 to exercise their pre-emptive rights option, which could provide the Company with up to an additional C$40 million in proceeds.

OTTAWA — World Heart Corp. announces that it has completed the previously announced sale of 3,027,000 special warrants (“Special Warrants”) at a price of Cdn $5.50 per Special Warrant, for gross proceeds of $16,648,500. Each Special Warrant is exercisable, without additional consideration, for one Unit, with each Unit representing one common share of the Corporation, and a warrant to purchase a common share. Each warrant will be exercisable into one common share at an exercise price of Cdn $6.01 per share for a period of two years. The Corporation also announced the closing of a separate transaction, whereby a labour sponsored venture capital corporation has purchased, at a price of Cdn $5.50 per share, shares of a new research and development corporation for gross proceeds of $3,503,500. These shares will be exchangeable for an equivalent number of Units. The financing was led by Yorkton Securities Inc. in Canada and the syndicate included First Associates Investments Inc. The total gross proceeds from both transactions are $20,152,000.

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