TeraXion Secures $10M in Second Round Financing

March 27, 2003
TeraXion has secured an additional $10 million in an ongoing second round of financing. SGF Tech led this round of financing, joined by existing shareholders of TeraXion, such as Business Development Bank of Canada (BDC) and Innovatech Québec, as well as new investor, Entrepia Inc.

Quebec City. TeraXion has secured an additional $10 million in an ongoing second round of financing. SGF Tech led this round of financing, joined by existing shareholders of TeraXion, such as Business Development Bank of Canada (BDC) and Innovatech Québec, as well as new investor, Entrepia Inc. The money raised in this round, the formal close of which will be announced at a later date, will help TeraXion to launch its next generation products and sustain sales and marketing efforts worldwide.

"This important investment from SGF Tech in TeraXion confirms our strategy to continue supporting and strengthening the most innovative Quebec-based companies of the photonics sector, such that they be positioned to stand out once the telecommunications market returns to more normal conditions", said Pierre Laflamme, President and Chief Operating Officer of SGF Tech Inc. "This young company has managed to build an impressive customer base, and we are convinced that, with its broad offering of high performance products and outstanding design and manufacturing capabilities, TeraXion is uniquely positioned to become a worldwide leader in its market segment", continued Mr. Laflamme.

"We are pleased to join the TeraXion investment team, as we recognize in the company a sound business plan and an exceptionally focused management team," said Gene Kawaratani, President and CEO of Entrepia, Inc. "That they have now generated revenues for several months consecutively in a very difficult environment reflects well on the value proposition of their product line and potential for profitably expanding into other areas of optical networking."

"We are pleased with the evolution of TeraXion given the challenging market conditions over the last two years," said Charles Cazabon, VP, Venture Capital at BDC. "We are confident that TeraXion has the potential to become a real success story in its industry." "This financing confirms TeraXion's leading position in the high-performance optical components market, and makes it an influential player in Quebec's Optics City. Innovatech Québec is more than pleased to support a company with such a high level of innovation that is gaining strong market acceptance", said Francine Laurent, CEO of Innovatech Québec.

"Our investors recognize that we have been able to generate revenues, in a very difficult climate, from a broad customer base by virtue of a diverse product portfolio," said Alain Chandonnet, CEO of TeraXion. "This vote of confidence should be reassuring to our customers as we prepare to launch new tunable components and functional modules for the next generation of optical networking systems." "The excellent cooperation and agreement between our existing investors and our new ones helped make this round a reality," said CFO Richard Kirouac. "This round is a testimony to the strength of our business plan, our team and our ability to withstand today's financing challenges."

For more information, visit www.teraxion.com.

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