We had followed Urodynamix Technologies for a number of years but we were not interested in investing until Barry Allen took over as President and CEO of the company. Barry is a Lions Capital Mentor and members of our team had worked with Barry in the past and were impressed by his deep level of experience in the medical device industry, his business development and corporate finance skills, and his proven ability to successfully develop early stage technologies.

When Barry stepped in to take over the lead role at Urodynamix, it was an undervalued public company (TSX-V: URO) that was in the process of licensing a novel diagnostic technology from the University of British Columbia. The technology uses near infrared spectroscopy (“NIRS”) as a non-invasive method for diagnosing urological conditions such as prostate cancer, benign prostatic hyperplasia, and urinary incontinence. As part of our due diligence we had a Lions Capital Mentor, Dr. Zeid Mohamedali MD, and PhD, analyze the company’s clinical data and question the management team. Dr. Mohamedali is a consulting urologist with over 20 years of experience in medical research and clinical practice specializing in oncology and urology. Dr. Mohamedali was very impressed with the clinical data and the market potential of the product and joined the Board of Directors and Medical Advisory Board of Urodynamix following our investing $500,000 into the company in late 2005 to become its first institutional investor. At closing Jim Heppell joined Urodynamix as a director and Tanner Philp joined as Secretary to further assist in the build out of the company.

At the time of Advantage’s initial investment, Barry Allen was working for Urodynamix on a part-time basis as the initial stages of the development of the NIRS technology did not require his full-time participation. However, we felt that the commercialization of the NIRS technology would be expedited if Barry made that his sole focus. Soon after investing in Urodynamix, we led the negotiations to establish a compensation package that would allow Barry to make a full-time commitment to Urodynamix. We then introduced Dr. David Goodkin, another Lions Capital Mentor, to Urodynamix. Dr. Goodkin was Senior VP and Chief Medical Officer of ICOS Corp, creator of the blockbuster drug Cialis, from 2002 to 2007 and, prior to ICOS, spent ten years at Amgen. Dr. Goodkin also joined the Board of Urodynamix and both Lions Capital Mentors have been instrumental in the scientific and clinical development of the NIRS technology.

Since our initial investment Urodynamix has made significant progress. The company has carried out a number of clinical trials to establish the effectiveness of NIRS as a non-invasive method of diagnosing different urological conditions, obtained regulatory approval for its device, entered into a distribution agreement with Laborie Medical Technologies, a world leader in urology diagnostic systems, and made its first commercial shipment. Impressed with the speed of Urodynamix’s progress, we exercised warrants in 2006 and 2007 to invest, in aggregate, another $1.5 million into the company. Being strong believers in Urodynamix and its market potential, we have spent considerable efforts to introduce the company to our network, which has helped attract sophisticated, long term investors to the company. To quote Barry Allen “This has definitely been a win/win relationship.”