ACTON, Mass.--(BUSINESS WIRE)--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 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, a breakthrough in powering manufacturing and logistics
systems, as well as a new class of elevators developed for the U.S.
Navy. Organizations ranging from government agencies to major
consumer goods companies and value added resellers rely on
MagneMotion for superior results.
Last modified: September 26, 2006
