Optovation Closes Cross-Border Financing

Optovation Corp., an Ottawa-based developer of advanced fibre optical components, announced on January 8, 2002 the completion of a $37.8 million series B financing from U.S. and Canadian investors. The financing had two closings, the first on November 13, 2001 and the second on December 20, 2001, and consisted of the issuance of series B stock and special exchangeable shares. This brings the total venture capital raised by Optovation to $61 million. The lead investors were Altamira Investment Services Inc. and Newbury Ventures. Joining existing investors New Enterprise Associates and Redwood Ventures, which participated in the financing, were new investors including RBC Capital Partners, Investissement Desjardins Inc. and BMO Nesbitt Burns Equity Partners.

Fraser Milner Casgrain LLP acted for Optovation with a team that included David Little, Andrea Johnson and Karen Shaver in Ottawa, and Catherine Coulter (employment law) and Joanie Schwartz (Quebec securities law) in Montreal. Kerry Tomasevich and Tom Beetham of Palmer Dodge LLP in Boston provided U.S. legal advice to Optovation.

The investors were represented by Osler, Hoskin & Harcourt LLP with a team that included Elizabeth Walker and Bert Clark, and Melanie Polowin (employment law) and Marisia Campbell (intellectual property) in Ottawa. Robert Sepucha Jr. of Gunderson Dettmer Stough Villeneuve Franklin & Hachigian LLP in Boston provided U.S. legal advice to the investors.