Additional funding was required to settle some deferred production set-up costs in Europe and to enable the completion of the joint venture deal. However, time scales in the negotiations had been too short to enable traditional bank funding to be practical and so the directors approached Janus Venture Finance director Jonathan Wooller for assistance.
Jonathan said: “Raising the finance was critical to negotiate an improved deal
with the Chinese partner. With our network of investors, we were soon able to
identify suitable options and worked both in the UK and China to ensure the
deal was done. Getting the mezzanine finance in place so quickly not only
ensured that the Group could operate in the short-term, but also that enabled
the directors to negotiate the final agreement from a stronger position.”
Not only was time critical but the deal was also complex one, not just because of the overseas parties involved. We were able to use the skills of our associated law firm, Hyde Law, to ensure that the company's key asset - their intellectual property rights - were protected.
Within two weeks of the initial approach we were able to provide an offer of £1.1m funding for the business which enabled the deal to be completed a few weeks later.
"The funding raised enabled us to complete a manufacturing agreement in China which will be the launch pad for the Group in the Far East, Asia and Australia . Our plan is that this will be the stepping stone towards an IPO and we hope to work with Janus' partners further to help us achieve our ambitions."