Vanguard Management, a business unit of Vanguard Minerals, has entered into a business development agreement with Genesis Venture Fund India I, a private venture capital fund that makes investments in emerging growth companies in India.
Under the terms of the agreement, Vanguard Management will provide ongoing business development and management consulting services to Genesis portfolio companies and assist with opening new markets for portfolio company services in India and Sri Lanka.
Under the deal, Vanguard agrees to provide the above consulting services for a term of 24 months.
Genesis will be issued 125,000 common shares of Vanguard as part of the transaction in exchange for 15 per cent of the limited partnership interests in Genesis that will be issued to Vanguard.
Genesis will also pay Vanguard up to USD250,000 in cash milestone payments based on the performance of consulting services by Vanguard for Genesis under the agreement.
Jim Price, chief executive of Vanguard Management, is currently the owner of 20 per cent of the limited partnership interests in Genesis and also serves as its managing director.
Price says: "Genesis has been actively developing relationships with emerging growth companies in India since 2005. As I have worked with Genesis, I have seen the potential synergies that the Vanguard team could bring to the Genesis portfolio companies. This strategic partnership will significantly augment the management resources Genesis can provide to its portfolio companies and will also expand Vanguard’s core strategic consulting business into India, a country where macroeconomic growth prospects remain exciting."
