SCHOMBERG, ONTARIO--(Marketwired - April 4, 2013) - Sentient Magnetics Inc. is receiving a contribution to accelerate the development of its new automotive audio speaker. The funding was announced today by Paul Calandra, Member of Parliament for Oak Ridges-Markham, on behalf of the Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).
"Our Government's top priorities are jobs, growth and long-term prosperity," said MP Calandra. "With support for Sentient Magnetics, we are investing in business innovation and job creation in Schomberg and increasing exports of high-value Canadian products to international markets."
Under FedDev Ontario's Investing in Business Innovation initiative, Sentient Magnetics is receiving a contribution to accelerate the development of its new automotive audio speaker. The speaker is being developed using the company's internationally patented technology, which eliminates the need for the costly rare earth element neodymium in the production of speaker magnets. Removal of neodymium will greatly reduce the price and weight of the speaker, responding to the needs of the automotive industry, where price and fuel economy are more important than ever.
"As a result of FedDev Ontario's financial participation we have been able to cut time to market with early prototypes and get the attention of potential customers much more quickly," said John French, CEO of Sentient Magnetics. "This is especially important to our investors, given the typical lengthy process for adopting new technology in the automotive industry."
FedDev Ontario funding for Sentient Magnetics has enabled the company to attract up to $410,000 in leveraged funding from Maple Leaf Angels, a registered member of the Network of Angel Organizations-Ontario.
The company anticipates creating up to 19 full-time jobs during implementation of this project and an additional six jobs in the Schomberg area by 2017.
For more information on this project and the Investing in Business Innovation initiative, please refer to the backgrounder.
Investing in Business Innovation is designed to boost private sector investment in start-up businesses to accelerate the development of new products, processes and practices and help bring them to market. The Government of Canada is focusing on a portfolio of early-stage businesses that are recognized by the investor community as having the potential for high-growth and a net long-term economic benefit for southern Ontario. The investor community includes accredited angel investors from recognized angel investor networks in southern Ontario registered with the Network of Angel Organizations - Ontario and venture capital providers who are member of Canada's Venture Capital & Private Equity Association.
Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. In Budget 2013, the Government of Canada demonstrated its continued commitment to workers, families and communities in southern Ontario with the renewal of FedDev Ontario. Economic Action Plan 2013 provides $920 million over five years for the Agency, starting on April 1, 2014. As part of the renewal, FedDev Ontario will be allocating $200 million over five years for a new Advanced Manufacturing Fund in Ontario.
As outlined by the Prime Minister, the Government of Canada remains focused on what Canadians care most about: their families, the safety of our streets and communities, their pride in being a citizen of this country, and their personal financial security.
To learn more, please visit www.FedDevOntario.gc.ca or call 1-866-593-5505.
Follow us on Twitter @FedDevOntario.
IF THERE IS A DISCREPANCY BETWEEN ANY PRINTED VERSION AND THE ELECTRONIC VERSION OF THIS NEWS RELEASE, THE ELECTRONIC VERSION WILL PREVAIL.
This news release is available online at: www.FedDevOntario.gc.ca.
CONTRIBUTION TO SENTIENT MAGNETICS INC.
Located in Schomberg, Ontario, Sentient Magnetics Inc. was created from its parent company, Audera Acoustics Inc. in 2011 to focus on the development of its electromagnetic technology that eliminates the need for the rare earth element neodymium in magnets such as those used in speakers. The company has obtained domestic and international patents for this electromagnetic technology.
Under the Federal Economic Development Agency for Southern Ontario's (FedDev Ontario's) Investing in Business Innovation initiative, Sentient Magnetics Inc. is receiving a repayable contribution of up to $205,000. The funding supports a project to accelerate the development of a new automotive audio speaker that is less expensive and weighs less than current technologies, without compromising sound quality over its competitors that use neodymium.
Currently, neodymium is used to create the world's most powerful, lightweight magnets, which are used in smartphones, hybrid electric cars, audio speakers, and more. The bulk of current neodymium production is in China, where regulations have imposed a significant price increase since 2008. In addition, rare earth elements, so named because they were originally thought to be rare, are widely distributed but sparsely concentrated. Because of this, they are incredibly expensive to refine in quantities sufficient to meet the global demand of technology manufacturers.
Funding from FedDev Ontario's Investing in Business Innovation initiative has enabled the company to attract up to $410,000 in leveraged funding from Maple Leaf Angels, a registered member of the Network of Angel Organizations-Ontario.
The company anticipates creating up to 19 full-time jobs during implementation of this project, with an additional six jobs by 2017.
Investing in Business Innovation
Investing in Business Innovation provides improved access to financing for start-up businesses, boosts private sector investment in start-up businesses, and helps accelerate the research and the development of new products and ideas and bring them to the marketplace.
The initiative addresses the development and commercialization challenges faced by start-up businesses in southern Ontario by helping them to obtain angel and venture capital investments in the development of their business.
For more information, please refer to www.FedDevOntario.gc.ca