[news 1999-2000]

$7 million venture capital fund created to commercialize biotechnology discoveries at Queen's

February 15, 1999

KINGSTON, ON -- Researchers and scientists at Queen's University received a boost today with the launch of the Working Ventures CMDF Queen's Scientific Breakthrough Fund. The $7 million venture fund will invest in enterprises formed by Queen's researchers looking to protect, commercialize and market health and life sciences research discoveries.

The Working Ventures CMDF Queen's Scientific Breakthrough Fund is the second fund to be launched under the Ontario Government's Community Small Business Investment Fund (CSBIF) Program. Established as a partnership between Queen's University, Working Ventures Canadian Fund, the new Fund will be managed by PARTEQ, Queen's technology transfer arm.

The program was founded to provide a local source of capital to small, high-growth businesses and to provide stimulus for investment partnerships between investment pools, universities and their local communities.

The fund will make initial investments of up to $250,000 and follow-on investments of up to a total of $1.4 million in companies with less than $1 million in assets. While the fund will focus on investing in biotechnology and health and life sciences enterprises, researchers from other technology fields could also qualify.

Initial capitalization of the fund consists of $5 million from Working Ventures Canadian Fund, Canada's largest national venture capital fund, and $2 million from the Canadian Medical Discoveries Fund, the largest venture investor in Canada's life sciences sector.

"This is a great vote of confidence in PARTEQ," says John Molloy, President and Chief Executive Officer. "PARTEQ has the management infrastructure, expertise, proven capability and access to intellectual property which makes it an ideal partner to manage a venture fund under this innovative government program. This is incredibly exciting for Queen's and also for the local community. This is the first time Kingston has had access to a captive venture fund and this presents great possibilities for economic stimulation of the local economy."

Ron Begg, President of Working Ventures says, "There is a critical need for patient capital, strategic management and business development expertise to help drive discoveries into the commercial pipeline. Working Ventures and our partners in this fund bring the necessary resources required to help boost Canadian health and life sciences advances and make money for our shareholders."

Dr. Calvin Stiller, Chairman and CEO of Canadian Medical Discoveries Fund, says "this is the first of CMDF's investments in a community-based small business investment fund. We are delighted to see this at Queen's where CMDF and its affiliated company, University Medical Discoveries Inc., have already worked with scientists and invested in a number of technologies under development there. We look forward to this collaborative endeavour, and to the establishment of others throughout the province."

Ontario Minister of Energy, Science and Technology, Jim Wilson, welcomes the announcement of Working Ventures CMDF Queen's Scientific Breakthrough Fund. "Investments like these help stem the 'brain drain' and keep Ontario on the leading edge of biomedical research," says Minister Wilson. "Funding start-up research firms will create jobs for some of our best and brightest young minds."

PARTEQ's primary mission is to maximize return through the commercialization of intellectual property owned or assigned to Queen's University. PARTEQ spin-off companies have raised more than $55 million over the last three years to develop technologies discovered through research at Queen's. PARTEQ has helped create more than 125 jobs and currently estimates the value of its spin-off efforts at more than $175 million.

Queen's Principal, William Leggett, says he is delighted. "Queen's showed great foresight in 1987 in creating PARTEQ to explore the potential commercial value of university discoveries. We have seen, in a very short time, some amazing results and there is every reason to believe that Queen's researchers and the Kingston economy will continue to benefit greatly."

Contact:
John Molloy
President and CEO
PARTEQ Innovations
Phone: (613) 533-2342
Email: molloyj@post.queensu.ca