Strathmore’s Global Network Extends
FOR IMMEDIATE RELEASE
Strathmore’s Global Network Extends Further With Strategic Stakeholding In Leading US Venture Catalyst
US$1 Million Deal Clinches 10% Shareholding In Double Impact Inc Placing Strathmore At The Centre Of North American Venture and Investor Services Activity
Auckland – Monday 3 April, 2000 – Strathmore Group Limited (NZSE: SMR) has further extended its global network by taking a 10% stakeholding in Silicon Valley’s Double Impact Inc, one of the most sophisticated technology “Venture Catalysts” in the world. In a deal worth US$1 million, Strathmore will pay US$500,000 cash upon full execution of the Share Subscription Agreement, and US$500,000 in Strathmore shares to acquire a 10% interest in Double Impact. The Strathmore shares will be issued at 45 cents (NZD).
Established in 1996, Double Impact has offices in North America, Europe, Asia and Australasia servicing an extensive international client portfolio from these locations. “As the surge of cross-border Internet venture activities continues and regional markets around the world come of age, there is a growing need for a mechanism to effectively unlock and increase the value of these nascent ventures,” explains Michael J. Gale, CEO of Double Impact. “Strathmore, like Double Impact, aims to do just that for its investees and this investment will strengthen the commercial relationship that has existed between our firms for some time”.
“Strathmore is one of the most successful funders of ‘born global’ companies that I have seen”, continues Gale. “Forming this highly strategic relationship greatly assists us in taking advantage of the many market opportunities originating from Australasia. Strathmore further strengthens our international deal flow capability and we welcome them to our global network.”
The strategic investment in Double Impact is a significant step for Strathmore according to Strathmore Chairman, Phil Norman. “This investment places our company right at the heart of the North American venture services market. The investment in Double Impact will greatly increase our ability to leverage an international resource base, further assisting our investee companies to grow the global potential of their products,” says Norman.
Double Impact has a team of 30 professionals, all of whom have a wealth of experience in the ‘Internet economy’. “We have previously worked with Double Impact and used them in a variety of roles for our investee companies including, strategic partner identification, market analysis and business development services, technology licensing and deal negotiations,” says Norman. “We have always been impressed with Double Impact’s ability to accelerate the development of their clients’ businesses and have found that access to their extensive global network of industry contacts is enormously beneficial to the Australasian companies we work with.”
The transaction which is part of a US$2 million funding round will also see Norman take a position on the board of Double Impact Inc. Norman says this will allow Strathmore to directly pursue business opportunities in the US technology space creating additional shareholder value in the company.
“Bringing Double Impact onto our share register will also enhance our ability to generate deal flow from companies in the United States and Europe that are seeking an Asia Pacific presence. This latest transaction creates another growth opportunity in the technology investment area which is a core focus for Strathmore,” says Norman.
About Double Impact Inc
Double Impact Inc is a global venture catalyst focused on building upside for high growth Internet, IT, new media start-ups and established companies. Since 1996, the company has been accelerating the growth and success of clients around the world with its international network of offices. Entrepreneurs, investors, corporations and governmental agencies hire the Double Impact team to help their ventures gain value faster. Double Impact offers venture and investor services to clients anywhere in the world. As The Silicon Valley Lighthouse™, Double Impact can tap into the Valley's deep pool of entrepreneurial resources and as The Global Venture Catalyst™, it can accelerate growth in any geography. More information on Double Impact is available on the web at www.doubleimpact.com
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately NZ$18 million of shareholders’ funds. It targets Internet, e-commerce and information technology companies with potential to deliver accelerated growth in shareholder value by competing in global markets. It provides strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internationally.
For further information, please
Phil Norman, Chairman, Strathmore Group Ltd, Tel: + 64- 21 667-210, firstname.lastname@example.org
Michael Gale, Chairman & CEO, Double Impact Inc, Tel + 1 415 227-9500, email@example.com
Nicholas O’Flaherty, Senior Account Manager, Botica Conroy & Associates, Tel: + 64-9 303 3862, firstname.lastname@example.org