Kirk Falconer
Praemo, a Kitchener, Ontario-based industrial operations performance solution, has closed a Series A financing, raising $3.5 million. McRock Capital, a Canadian industrial internet-of-things venture capital firm, led the round. Launched in 2017, Praemo is the developer of Razor, an analytics engine that leverages artificial intelligence to predict and prevent disruption in industrial operations. The technology has so far been deployed in the automotive, industrial equipment manufacturing, injection molding, and food and beverage sectors. Led by CEO Michael Martinez, Praemo will use the round's proceeds to broaden its market reach, expand key partnerships, and further build out the Razor platform.
Toronto-based cannabis lifestyle brand MoCanna said Canopy Growth Corp (TSX: WEED, NYSE: CGC) will lead its Series A financing with a $2 million investment. The $5 million round is expected to close next month. Cannaglobal, a Canadian cannabis venture capital firm and MoCanna's largest shareholder, will also invest. Founded by Chairman Lorne Gertner and led by CEO Shauna Levy, MoCanna is the company behind byMinistry, which aims to integrate cannabis consumption lounges, dispensaries and convenience stores. ByMinistry's Toronto location, which will open in early 2020, is intended to be the first of several created across North America over the next five years.
Canadian private equity firm TerraNova Partners and Michael Platt have acquired majority control of Carma Industries Inc, a Lindsay, Ontario-based submetering business, and the affiliated Carma Billing Services Inc. Terms weren't released for the deal, which was done in partnership with the Williams family. Platt, a utilities and energy industries specialist who joined Carma last year, was appointed CEO. Founded in 1977, Carma manufactures utilities sub-metering equipment and provides utility billing solutions to multi-residential, condominium, commercial and institutional clients across Canada. Toronto-based TerraNova invests in growth, turnaround, carve-out and comparable deals in a range of sectors.
CIBC Innovation Banking has provided $1 million of debt financing to Sampler, a Toronto-based direct-to-consumer product sampling platform. CEO Marie Chevrier, who founded Sampler in 2013, said the funding has helped the company to leverage revenue, supporting increased growth and entry into new markets. Sampler manages sampling programs for consumer-packaged goods companies. Its technology is used by more than 300 brands in over 24 countries. Earlier this year, Sampler closed a $3 million financing led by BDC Capital’s Women in Technology Fund and Shipfusion Inc. CIBC Innovation Banking is the technology lending arm of CIBC.
Great Rock Capital has provided a senior secured term loan of $45 million to Oculus Transport Ltd, a Calgary-based oilfield hauling business. Great Rock partnered in the transaction with revolver lender, HSBC Bank Canada. The proceeds will support the company's growth. Founded in 2011 by CEO Ric Peterson, Oculus is focused on the logistics and transportation of pipe hauling, pipe storage, fluid hauling, fluid storage, and natural gas liquid and liquefied natural gas hauling. Great Rock is a U.S. asset-focused commercial finance firm specializing in mid-market lending.
Chinook Therapeutics, a Vancouver-based developer of precision medicines for kidney disease, has raised about $86 million (US$65 million) in a Series A financing. U.S. life sciences venture capital firm Versant Ventures led the round, with participation from Apple Tree Partners and Samsara BioCapital. Chinook was incubated through Versant's Inception Sciences and seeded by Versant and Apple Tree. Chinook's technology leverages single-cell RNA sequencing, human-derived organoids and new translational models to develop therapeutics with novel mechanisms of action against kidney disease pathways. Led by President and CEO Eric Dobmeier, the company will use the funds raised to advance several programs into clinical trials by 2021.
Toronto-based mobile rewards platform Drop has raised $59 million (US$44 million) in a Series B financing, bringing total funding to $95 million (US$71 million). The round was led by U.S. venture capital firm HOF Capital and joined by New Enterprise Associates, Sierra Ventures and White Star Capital. RBC, Canada’s largest bank, also signed on as a strategic investor. Founded in 2015 and led by CEO Derrick Fung, Drop provides a free app that allows users to earn cash rewards on their purchases with more than 300 merchants. In addition, it connects brands with shoppers, including much sought-after Millennials.
Docebo, a Toronto-based corporate learning management system, has filed a preliminary prospectus with Canadian regulators for an initial public offering (IPO). The number and price of common shares to be sold on the Toronto Stock Exchange have not been determined. Founded in Italy in 2005, Docebo provides a cloud-based software-as-a-service platform for internal and external workforce training. It is used at 1,500 organizations in more than 90 countries. Docebo's primary shareholders are Intercap Equity, an affiliate of Canadian merchant bank Intercap, and Canadian enterprise software private equity firm Klass Capital.
U.S. private equity firm PMC Capital Group has acquired StyroChem Canada Ltd, a Montréal-based manufacturer of expandable polystyrene (EPS) grades. No financial terms were disclosed for the deal, which saw PMC partner with StyroChem's management team. The seller was WinCup Inc, a U.S. maker of disposable food service products. Established in 1975 as Expandable Technologies, StyroChem supplies its EPS products to customers in food service, packaging, construction, casting and other industries in North America and abroad. StyroChem President Glenn Wredenhagen said the partnership with PMC will support the company's growth, both organically and through acquisitions.
GHGSat, a Montréal-based provider of emissions monitoring services, has raised $3.3 million of funding from Sustainable Development Technology Canada (SDTC). GHGSat is focused on remote sensing of greenhouse gas and air quality gas emissions from industrial sites. The funds raised will support a study in British Columbia's Montney region to compare emissions data collected by terrestrial sensors to GHGSat's satellite and aircraft measurements. Field operations will begin in 2020. Last year, GHGSat closed a US$10 million Series A2 round led by OGCI Climate Investments and joined by Schlumberger, Space Angels and Business Development Bank of Canada (BDC).