Magnemotion Closes $3 Million in Mezzanine Round of Funding
Acton, MA, September 26, 2006 - MagneMotion, a developer and manufacturer of assembly automation, material handling and transportation solutions using electro-magnetic technology, today announced it has secured a $3 million mezzanine round of funding from new and existing investors. The round is led by Massachusetts Capital Resource Company (MCRC). MagneMotion received $2 million in equity and $1 million in subordinated debt financing; proceeds will be used to fuel the rapid growth and market penetration of its linear synchronous motor (LSM) and core development of its magnetic levitation (MagLev) technologies.
"MCRC is pleased to be part of MagneMotion's continued growth," said Ken Lavery, vice president of MCRC. "Massachusetts is home to a number of exciting companies with innovative and compelling business models and products. MagneMotion has distinguished itself through the implementation of its electromagnetic technology on projects for high profile government, manufacturing and transportation systems customers, and we look forward to working with its strong management team to further expand the business."
Specifically, the funding will be used to expand market penetration and enhance MagneMotion's product offerings. Recent initiatives include the development of an urban MagLev demonstration system in cooperation with the Federal Transit Administration and an LSM-based weapons transport elevator for the U.S. Navy. Additionally, MagneMotion's QuickStick(TM) LSM propulsion and control system revolutionizes the assembly automation and material handling market as a faster, cleaner and more advanced alternative to conventional methods.
"MagneMotion's penetration into key markets validates the company's position as an industry leader," said Mike Hannon, chief financial officer of MagneMotion. "We are excited to work with MCRC to assist our continued product development and further secure and maintain relationships with key constituencies."
About Massachusetts Capital Resource Company (MCRC)
Massachusetts Capital Resource Company is a limited partnership privately owned and funded by Massachusetts-based life insurance companies. MCRC is a source of risk capital for Massachusetts business and invests across the entire range of business development financings, with a particular emphasis on growth capital. More information can be found at www.masscapital.com.
About MagneMotion
MagneMotion provides the world's most advanced electromagnetic transportation, assembly and logistics solutions. The company's renowned scientists have captured the power of Linear Synchronous Motor (LSM) and MagLev technology to create faster, more efficient, longer lasting and more affordable automated manufacturing and transportation systems. LSM technology underpins the company's QuickStick(TM), a breakthrough in powering manufacturing and logistics systems, as well as a new class of elevators developed for the U.S. Navy. Organization's ranging from government agencies to major consumer goods companies and value added resellers rely on MagneMotion for superior results.
Contact:
Todd Webber
MagneMotion
978-461-5090 ext. 227
twebber@magnemotion.com
Nicole Loux
Racepoint Group
781-487-4617
nloux@racepointgroup.com
