$5.885+ Billion in January’s Deals New in the News
BLG Ventures, Community of Science, Cyberworld, eGlobe, Eritmo.com, Fandom, Garage.com, itarget.com, Logibro, MedicalSuppliesUSA.com, neoButler, RealTimeImage, Tradesmanlink.com, Warburg Pincus
$5.885+ Billion in January’s Deals
New in the News
WASHINGTON — eGlobe Inc. (Nasdaq:EGLO) announced that a fund managed by Rose Glen Capital Management LP invested $15 million in a private placement of preferred stock. The preferred stock is convertible into eGlobe common stock with an initial conversion price of $12.04 per common share (120% of the five-day average price prior to closing). Rose Glen is an asset management firm which makes direct investments in publicly-traded companies with promising growth potential and superior management. eGlobe is a global enabler of enhanced Internet Protocol Services for the world’s telephone companies and Internet Service Providers. eGlobe’s services include: Voice over IP, telephone portal and unified messaging services.
BALTIMORE — Community of Science Inc., a Web site for scientists and scholars to find funding, promote their research and collaborate with peers worldwide, completed a $10 million private placement financing with several new strategic investors. The new COS investors include KnowledgeNet Holdings (a subsidiary of Knowledge Universe), VerticalNet Inc. (Nasdaq:VERT), EDB Ventures Pte Ltd. of Singapore, Venture Partners AG of Switzerland, and the Association of Commonwealth Universities. These investors join existing COS shareholders Dominion Income Management Corp. and The Hillman Company of Pittsburgh.
MONTREAL– MM Venture Partners completed a $3 million venture financing with Logibro Inc., an international provider of eCommerce services and IT Solutions for the leisure travel. The company’s other strategic investor is the Caisse de Depot’s Sofinov group out of Montreal. Logibro technologies streamline production and distribution processes for vacation packagers and leisure travel suppliers, allowing lower operating costs and higher margins.
SANTA ROSA, Calif. — Healthcare start-up Med-eCommerce.com (dba MedicalSuppliesUSA.com) completed an additional $2 million private placement financing of the company’s shares of preferred and common stock from BioAsia Investments LLC of Palo Alto. Terms of the sale were not disclosed. The company also announced the appointment of Michael Plotkin as chief technology officer. He was most recently employed at VisComm, preceded by positions at NeXT Software and Autodesk.
Internet Fact of the Day
The U.S. market for residential high-speed Internet services will grow to 3.3 million subscribers this year, and will reach 16.6 million subscribers by 2004, according to a new report from the Yankee Group.
MIAMI — Eritmo.com, a virtual community for Latin music aficionados, announced that Merrill Lynch Global Emerging Markets Partners LP, a Merrill Lynch private equity fund, made a minority investment in the company. Terms of the deal were not disclosed. eritmo.com is building an extensive Latin music digital library for online sampling and sales, as well as live chats with favorite artists and live concert Webcasts.
NEW YORK — E.M. Warburg, Pincus & Co. LLC announced that its venture capital funds expanded their Latin America Internet portfolios by making investments in two comp
anies. Warburg, Pincus has become a strategic financial partner in Bodasynovias.com, a regional e-commerce and community website operator focused on weddings and brides; and Elefante.com, which operates the largest online calendar and reminder service in Brazil.
HERZLIA, Israel, & SAN MATEO, Calif.– Scitex Corp. Ltd. (NASDAQ:SCIX) invested in RTimage Ltd., a provider of professional Internet-based imaging products and services for the graphic arts and medical communities. This investment is in addition to a recently completed $8 million round of financing. Following the investment, Scitex will hold approximately 13% of the company’s shares on a fully diluted basis, joining RealTimeImage’s existing investors; Intel 64 Fund, ComSor, Citicorp, Newbury Ventures , THCG Inc. and TDA Capital Partners Inc.
PEARL RIVER, N.Y.– Quintel Communications Inc. (NASDAQ:QTEL) increased its equity position in itarget.com to a total of 15.9% of itarget.com’s total outstanding shares of stock of all classes, by exchanging 229,862 shares of Quintel’s common stock for 42,372 newly issued shares of itarget’s convertible Series B Preferred Stock. Concurrently with the exchange, the companies expanded their marketing relationship. Under the modified agreement, itarget has agreed to deliver a minimum of 2,000,000 new customers to Quintel and its e-commerce subsidiary, Multibuyer.com, and Quintel has agreed to create a “private label” version of its GroupLotto web site for itarget.com, with the companies sharing revenue derived from sales on the new site.
SANTA MONICA, Calif. — Fandom Inc., an Internet destination for science fiction, fantasy and horror entertainment news, information and merchandise, acquired certain business assets of AnotherUniverse.com, an Internet retailer of comics and science fiction related products. The acquisition of AnotherUniverse.com will extend the ecommerce capabilities of the company. Terms of the deal were not disclosed.
PORT PERRY, ON – Sikaman Gold Resources Ltd. (TSE: SKG) signed letters of intent to acquire a combined equity interest of approximately 22% in Cyberworld International Corp., a developer of web-based 3-D multimedia technology for the Internet, for a value of approximately US $3.27 million. Cyberworld provides software products that enable individuals, businesses, organizations, and communities-of-interest to build fast, interactive, new media environments for the web.
SAN DIEGO — Causeway Technologies Inc. (OTC BB:CAUS), the UK’s only U.S. publicly traded provider of software to the construction industry, acquired Tradesmanlink.com, an internet based on-line service that provides construction companies and householders with access to a database of available tradesmen. Terms of the deal were not disclosed.
NEW YORK — BLG Ventures Inc. has formed an incubator of minority-owned technology-based businesses on the East Coast. With a capital base which is expected to reach $100 million, the company is currently requesting submissions and/or proposals from prospective minority clients. BLG Ventures will provide office space, strategic consulting, web development, IT consulting, legal, financial, accounting, sales and marketing to develop minority-owned technology based businesses, and will also inject seed capital into selected portfolio companies on an as needed basis.
PALO ALTO, Calif.– Garage.com, a Web-based venture financing firm, opened its first European office in London. The office will connect entrepreneurs across Europe with U.S. high tech investors, strategic partners, potential customers, and experienced managers. The firm opened an office located in Israel in October 1999. Garage.com also has headquarters in Palo Alto, California and three U.S. regional offices located in Seattle, Washington, Boston, Massachusetts, and Austin, Texas. Katia Verresen will head business development for Garage.com’s European office. Verresen previously founded UpStart Ventures, a French firm that assists European entrepreneurs with international expansion strategy and capital needs. Prior to UpStart Ventures, Verresen worked with Venture Capital Report in France.
ho & Where
RESEARCH TRIANGLE PARK, N.C.– neoButler Inc. – a provider of a full-time personalized Internet navigation service – appointed Carey Barnes to the position of vice president of marketing. Barnes comes to neoButler from Interpath Communications Inc., an application service provider headquartered in the Research Triangle Park, where she was communications director. neoButler recently released the beta version of their product and the general release is scheduled for this spring. neoButler Inc. closed itsfirst round of financing in October 1999.
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