Transcript No Slide Title

Government Funding Opportunities
Don Van Dyke
Business Development Consultant
Ontario Ministry of Economic Development & Trade
AGENDA
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Where is Ontario?
Life Science in Ontario
Medical Devices in Ontario
Direct Government Funding
Ontario VC Fund
Tax Savings & Rebates
Government Loans for Advanced
Manufacturing
• Public Offering Funding
• Additional Resources
Where is Ontario?
Exceptionally Located
• Ontario gives access to over 135 million consumers within 500 miles
• NAFTA gives Ontario based companies easy access to the US market
• Less than a 2-hour flight from major U.S. life science centers
Life Science in Ontario
Biopharmaceuticals
Healthcare IT
Medical Equipment
Life Science in Ontario
• Pharmaceuticals
– 16,250 employees
– Includes global giants such as AstraZeneca, Bayer, Eli
Lilly, GlaxoSmithKline and Pfizer
– Revenues of more than $7 billion
• Medical devices
– 22,000 employees
– 600+ companies
– Revenues of $4 billion-plus
• Biotech
– 5,200+ employees
– 140+ companies, more than any U.S. state except
California or Massachusetts, including global giants such
as Amgen, Genzyme and Sanofi Pasteur
– Revenues of more than $2.7 billion
Medical Devices in Ontario
• Employs 22,000 people
• Includes more than 600 Device companies >60% of
Canada’s Device industry
• Includes GE Medical Systems, Siemens, Abbott Point of
Care (iSTAT) and Johnson & Johnson Medical Products
• Includes Ontario-founded MDS Sciex, SciCan, CME
Telemetrix & Tm Bioscience
• Revenues greater than $4 Billion
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Where is Ontario?
Life Science in Ontario
Medical Devices in Ontario
Direct Government Funding
Ontario VC Fund
Tax Savings & Rebates
Government Loans for Advanced
Manufacturing
• Public Offering Funding
• Additional Resources
Ontario’s
Next Generation of Jobs Fund
• NGOJF is a $1.15 billion program over five years
– This compares favorably to U.S. State programs
– Part of a larger “Innovation Agenda” of $3 Billion over 8 years
• The fund supports innovative investments in
technology, research, development and
commercialization across industries
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Next Generation of Jobs Fund 3 Programs
Cash Flow
Project Investment Commitment - $100M. NGOJF Grant - $15M (15%)
Cash Flow
1.
2.
3.
20% Advance upon signing
funding agreement
 20% of Grant
 Company expenditures to
earn the advance
NGOJF
Grant
Project
Expenditures
$3M
$0
$20M
Further disbursements
 60% of Grant reimbursed
incrementally based on 15%
of project expenditures
$9M
$60M
20% Holdback released after
100% investment commitment
certified
 20% of Grant
$3M
$20M
$15M
$100M
Total
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Where is Ontario?
Life Science in Ontario
Medical Devices in Ontario
Direct Government Funding
Ontario VC Fund
Tax Savings & Rebates
Government Loans for Advanced
Manufacturing
• Public Offering Funding
• Additional Resources
$205-million Ontario VC Fund
• Ontario’s contribution to the fund is $90 million.
• Between 80 per cent and 100 per cent of the capital
invested in Ontario VC funds.
• Up to 20 per cent of the capital will be available for direct
co-investments in companies.
• The $205 million Ontario Venture Capital Fund is the
biggest fund of its kind in Canada
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Where is Ontario?
Life Science in Ontario
Medical Devices in Ontario
Direct Government Funding
Ontario VC Fund
Tax Savings & Rebates
Government Loans for Advanced
Manufacturing
• Public Offering Funding
• Additional Resources
Ontario has broad definition of R&D
New product development
Development of new or improved materials
Manufacturing process improvement
Tax Savings for R&D in Ontario
• Ontario’s provincial tax credits, combined with
Canadian federal tax credits can cut the cost of a
$100 R&D expenditure to less than $44
• Every dollar is deductible, not incremental
• Not just tax relief
– Refundable cash benefit of 30 – 45%
– No revenue stream required
– $3 Million in R&D spending gets a check
from the government of up to $1,350,000
• These R&D tax credits are the most generous
of any G-8 nation
Tax Savings for R&D in Ontario
GROSS RESEARCH EXPENDITURE
Ontario Innovation Tax Credit (OITC) –
10%
R&D
Conducted @
Company
R&D
Conducted @
Research
Institution
$100.00
$100.00
(10.00)
(10.00)
Ontario Business-Research Institute
Tax Credit (OBRITC) – 20%
(20.00)
Federal Investment Tax Credit – 20%
(18.00)
(14.00)
Tax Deduction ($72 * 36.12%)
(26.01)
(20.23)
Ontario Exemption of Federal
Investment Tax Credit ($18 * 14.0%)
(2.52)
(1.96)
$43.47
$33.81
ACTUAL COST OF $100 R&D
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Where is Ontario?
Life Science in Ontario
Medical Devices in Ontario
Direct Government Funding
Ontario VC Fund
Tax Savings & Rebates
Government Loans for Advanced
Manufacturing
• Public Offering Funding
• Additional Resources
Advanced Manufacturing Investment
Strategy - AMIS A $500 million incentive loan program
Targeted at innovative activities in advanced manufacturing:
– Industrial R&D
– Design, prototyping and engineering
– New or advanced materials and products
– Advanced manufacturing processes
– Technology innovation
– Robotics/software development
– Waste reduction or energy conservation
AMIS Loans
• Loan of up to 30% of eligible project costs (max $10
million)
• Provided at Ontario’s cost of borrowing plus 1%
• Repayable loans are interest free for up to 5 years
provided the firm meets milestones and
performance targets
• The loan must be secured and the principal repaid,
but the terms are negotiable including term length
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Where is Ontario?
Life Science in Ontario
Medical Devices in Ontario
Direct Government Funding
Ontario VC Fund
Tax Savings & Rebates
Government Loans for Advanced
Manufacturing
• Public Offering Funding
• Additional Resources
Public Offerings
Toronto Stock Exchange (TSX)
TSX is one of the best markets in the world for raising public
equity capital
– 2nd in the world by number of listed public companies
– 5th in the world in total equity raised
– 8th in the world by total listed company market
capitalization
TSX Group Niche
Pre-Clinical
Phase I
Phase II
Phase III/
Regulatory
Approvals
TSX Venture Candidates
AIM Candidates
TSX Candidates
NASDAQ Candidates
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Where is Ontario?
Life Science in Ontario
Medical Devices in Ontario
Direct Government Funding
Ontario VC Fund
Tax Savings & Rebates
Government Loans for Advanced
Manufacturing
• Public Offering Funding
• Additional Resources
Additional Resources
• Business Immigration Services
– Personal consultations, networking opportunities, and
introductions to other service providers.
– Success Stories
http://www.2ontario.com/bi/bi_successstories.asp
– Multinational Employee Transfer Guide
– Business Start-up Resources
• Canada-Ontario Business Service Centre
• Small Business Enterprise Centres
• Streamlined on-line business registration
Additional Resources
• R&D Program
• Export Alliance
• Information Exchange
• Education Program partnerships
• MAT partnerships
• MAT funding opportunities
• How to: Roadmaps (i.e. Competitive
Intelligence and Regulatory approval)
Don Van Dyke
Raleigh, NC
Business Development Consultant
Ontario Ministry of Economic Development & Trade
[email protected]
(919) 345-2838