Espresso Capital Partners announced today the closing of a $600,000 financing to Richmond's Clevest Solutions Inc. through a Scientific Research and Experimental Development (SR&ED) Tax Credit backed, working capital loan.
This primary use of the funds was to finance the acquisition of certain assets from Neptune Technology Group announced last week. Clevest was ranked as the fastest growing technology company in BC by Business in Vancouver in both 2009 and 2010.
"Using the financing from Espresso Capital, we were able to finance the acquisition with cash, maintain appropriate working capital levels to run the business, and put the company in a stronger position to raise additional growth capital at a later date."
This financing marks the biggest SR&ED financing to date for Espresso and demonstrates their ability to leverage incoming SR&ED claims to increase enterprise value.
This time last year Espresso closed their first fund, $2 Million SRED Fund I. Founded in 2009, Espresso Capital Partners is privately held and services all areas of Canada with offices in Vancouver and Toronto and representation in Calgary. Founding partners include Greg Smith, Gary Yurkovich, Chris Welsh, and Garron Helman.